NZD/USD slips below 0.6000 as risk appetite crumples
|- The NZD/USD has dropped back beneath 0.6000 as markets turn back into the US Dollar.
- The Kiwi's recovery pattern is beginning to calcify into consolidation.
- NZ PPI to close out the Kiwi's data for the week, US Housing Starts in the barrel for Friday.
The NZD/USD is slipping back on Thursday and is set for its worst trading day in a month, down over 1.2% from the day's high of 0.6037.
A broad miss for US economic data soured market risk appetite, pushing the US Dollar (USD) higher against riskier assets like the Kiwi (NZD). US Initial Jobless Claims for the week into November 10th increased to 231K, higher than the 220K expectation and stepping over the previous week's 218K showing (revised upwards from 217K).
US Industrial Production also missed the mark, with October's production declining by 0.6%, falling back from September's meager 0.1% growth (revised downward from 0.3%) and blowing right past the market's forecast of -0.3%.
New Zealand's Producer Price Index (PPI) will land in the early Friday session when NZ markets open ahead of the pack. NZ PPI in the third quarter last came in at -0.2% for Input and 0.2% for Output.
NZD/USD Technical Outlook
The Kiwi's pullback below the 0.6000 handle leaves the NZD/USD exposed to further downside, with the pair at risk of getting pulled back through the 50-day Simple Moving Average (SMA) and into the 0.5900 handle, with the last swing low sitting near 0.5860.
On the topside, This week's peak at 0.6050 represents a technical resistance level due to repeated rejections from the region since falling into the sub-0.6100 zone in August. Long-term technical resistance will be capping off any upside runs at the 200-day SMA near 0.6100.
NZD/USD Daily Chart
NZD/USD Technical Levels
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.