The New Zealand dollar weakened against the US dollar during last weeks trading session after Consumer prices slumped in the fourth quarter. On Wednesday, Statistics New Zealand reported that consumer price inflation fell 0.2% in the fourth quarter, compared to expectations for a flat reading, after a 0.3% rise in the three months to September.
Weekly bias remains bearish as 21 and 55 Exponential Moving Averages are crossed downward on the 1 hour, 4 hours, Daily and Weekly time-frames. MACD and SSRC oscillator indicator are also signalling more bearish momentum is expected to continue this week. However i suggest a decent pull back and selling the rips whenever we have a chat pattern (engulf preferably) to give a fresh sell run so we can have a better risk to reward as the market seems to be a little bit oversold. A break of 0.74310 support will bring further surge to 0.73000 psychological zones.
Later this week investors will be watching closely the USD FOMC statement/Federal Funds Rate, USD Advance GDP q/q and NZD Interest Rate Statement and Official Cash Rate.