14.02.2019

The NZD/USD pair is currently chipping away at the 50-day MA hurdle at 0.6809, having picked up a bid at 0.6793 earlier today.  The Kiwi jumped more than 100 pips in the Asian session yesterday and clocked a high of 0.6852 even though the Reserve Bank of New Zealand adopted a dovish stance on interest. The NZ-US yield differentials had declined sharply in the days leading up to the rate decision, meaning the dovish shift was priced in. The Kiwi, therefore, witnessed a classic sell-the-rumor, but-the-fact trade post-RBNZ.  The American dollar, however, found takes in the American session after the upbeat US CPI report reduced dovish Fed policy bets. As a result, the NZD/USD pair trimmed gains and closed below the 50-day MA.  That average hurdle, however, could be convincingly scaled today if the China trade data, due in the next few hours, paints a positive picture of both the global and domestic economy.  China’s imports in January are forecast to have declined 11 percent year-on-year in dollar terms, following a 7.6 percent contraction in the previous month. Meanwhile, exports are expected to have dropped 2.7 percent following a 4.7 percent fall in December. A big beat on China’s trade numbers could boost risk sentiment and put a strong bid under the NZD.  NZD/USD Technical Levels

Original from: www.fxstreet.com