NZD/USD (current price: 0.7074)
New Zealand Retail Sales came in at 0.3%, way below the expected growth number of 1.1%. Credit Card Spending rose by a yearly 10.2%, beating the consensus estimate. The pair trended higher all day long, despite the mixed numbers. The strong rise in the price of oil and the rebound in precious metals helped the Kiwi on Monday. The cross trades just above the crucial 0.70 level after yesterday’s advance. The New Zealand Dollar might remain under pressure, as traders expect a rate hike by the Federal Reserve in December.
Our assessment: NZD/USD fell by almost 500 pips since the U.S. elections, before rebounding off the 200-day Moving Average yesterday. The long-term picture remains slightly bullish.
