NZD/USD (current price: 0.7270)
The New Zealand economy grew by 0.9% in the last quarter, and that is less than the consensus estimate of 1.1%, while the Australian Employment Report also provided a negative surprise in the region today in early trading. The pair resumed its recent decline following the releases after yesterday’s bounce, as it trades below the triangle consolidation zone that it has been trading in since June. A re-test of the 0.7250 is possible today, especially if the global correction continues.
Our assessment: The long-term picture now looks neutral for the Kiwi, as the break-out above 0.7350 quickly faded, and the pair returned to its prior trading range.
