The New Zealand dollar slid against the U.S dollar during last weeks trading session after official data on Thursday showed that consumer price inflation in New Zealand rose 0.3% in the third quarter, below expectations for an increase of 0.5%.The data fuelled speculation that the Reserve Bank of New Zealand could delay any potential rate hikes.
Despite Friday’s disappointing housing data, investors remained confident in the U.S. economic recovery, fueling speculation that the Federal Reserve could hike interest rates sooner than expected.
Weekly bias remains bearish with 21 and 55 Exponential Moving Average crossed to the downside. Price also made a mini rally to test the 21 EMA and formed a Pin-bar candle formation after rejecting the moving average. Also SSRC(stochastic), MACD, RSI oscillator are showing bearish momentum is still intact. Am expecting price to retest 0.77077 (September 29 low) if we have a break of 0.77967 support.
In the week ahead investors will be looking ahead to the outcome of Wednesday’s Federal Reserve meeting amid expectations that it will wind up asset purchases under its third round of quantitative easing.