NZD/USD breaks below strong support at 0.6425, short rallies
Kiwi slumped in the Asian session as data showed inflation fell 0.5% in the December quarter, much weaker than the market forecast of a 0.2% drop.
The annual change in the CPI was just a 0.1% increase, the weakest rise in more than 15 years, mainly due to lower fuel prices, way away from RBNZ's target.
As inflation continues to miss the bank's target, expectations rise for another RBNZ rate cut further weighing on the kiwi.
NZD/USD has broken below strong support at 0.6425, drop till 0.6240 likely, Techs point south
The pair finds immediate resistance at 0.6433 (5-DMA), while supports on the downside are located at 0.6311 (Sept 17 lows) and then 0.6243 (Sept 7 lows).
We would sell rallies around 0.64 levels, SL: 0.6490, TP1: 0.6310, TP2: 0.6290, TP3: 0.6240
The annual change in the CPI was just a 0.1% increase, the weakest rise in more than 15 years, mainly due to lower fuel prices, way away from RBNZ's target.
As inflation continues to miss the bank's target, expectations rise for another RBNZ rate cut further weighing on the kiwi.
NZD/USD has broken below strong support at 0.6425, drop till 0.6240 likely, Techs point south
The pair finds immediate resistance at 0.6433 (5-DMA), while supports on the downside are located at 0.6311 (Sept 17 lows) and then 0.6243 (Sept 7 lows).
We would sell rallies around 0.64 levels, SL: 0.6490, TP1: 0.6310, TP2: 0.6290, TP3: 0.6240