FXStreet (Guatemala) – NZD/USD has started to consolidate, but this time on the bid and around the 0.7780 resistance.
The Kiwi has been outperforming this week, starting out recovering from a bearish gap and up to the 0.78 handle from down at 0.7620 support on the open. A full cent higher brought in next key support and the bulls got a strong bounce from there overnight when demand met strong supply at 0.7800.
We are quiet today on the calendar for the New Zealand economy and we will wait for tomorrow’s domestic data for the bird. Tomorrow brings house prices and building permits data and at the end of the week we will turn to the greenback with the US jobs data, all of which are key in their own domestic right. The RBNZ will closely monitor the housing market and further upside surprises will add to the RBNZ’s call for acton. Technically, NZD/USD needs to overcome 0.7820 resistance and 0.8000 to move out into less bearish territory in the broader bear trend. 0.8159 200 SMA would be a key resistance there after.