NZD/USD consolidates above 23.6% Fibo support

NZD/USD pair is trading just above 0.7068 (23.6% of Sep 2015 low – July 2016 high) as NZD selling appears to have taken a breather following the data driven losses in early Asia.

Weak inflation hurts NZD

Data released in New Zealand today showed the consumer price index (CPI) rose at an annualized 0.4% pace in the second quarter, unchanged from the January-March period, but slightly lower than the estimate of 0.5%. Weak inflation has increased the odds of RBNZ pressing the easing button in August.

Consequently, the pair extended the three-day losing streak in Asia. Prices topped out last week at a high of 0.7325. The spot currently trades around 0.7076 levels.

NZD/USD Technical Levels

Acceptance below 0.7076 (38.2% of 0.6675-0.7325) – 0.7068 (23.6% of 0.6236-0.7325) would open doors for a drop to 0.70 handle under which losses could be extended to 0.6923 (61.8% of 0.6675-0.7325). On the other hand, a break above 0.7116 (July 7 low) could yield 0.7171 (23.6% of 0.6675-0.7325). Next major resistance is seen at 0.7241 (July 4 high).