NZD/USD (current price: 0.7248)
The New Zealand Dollar had a volatile session on Thursday following the release of the crucial CPI Index. The indicator came in at 0.4%, compared the consensus estimate of 0.3%. The Kiwi drifted lower throughout the session, despite the bullish data, as the broad rally in the Dollar weighed on the pair. The cross is now back near the 0.7250 level after hitting a new 10-week high around 0.73 earlier on this week. The easing of the fears regarding the Chinese economy and the Yuan helped the currency in the last two weeks.
Our assessment: The pair bounced off the upper boundary of the declining long-term trend channel. Strong resistance is still found near 0.7365, with support at 0.72.
