NZDUSD

Comparatively, the Kiwi major suffered under some pressure during the North American session as further paring of positions took place continuing the previous week’s momentum.  Spurring on the decline are expectations of this week’s data releases, with increasing focus being placed on the New Zealand retail sales and manufacturing figures for the week.  Both major contributors to the overall gross domestic product figure, both reports are expected to stay within limits of the previous month’s report, with slightly less figures anticipated for the retail sales figure.  Although consumers are visibly supporting the current expansion effort, a pull back wouldn’t be all too surprising as the report vaulted a surprising 1.3 percent in the month of July.  Should both reports be to the upside, overall expansion would be considered well supported for the underlying, keeping some longer term bulls in play.  As a result, with Kiwi interest rates expected to tighten, the end of the week’s retail sales figures are likely to be of little importance.  However, with weaker figures expected, the report may do well for further kiwi momentum.

Further momentum is building in the cards for the New Zealand major as suggestions are relatively clear cut in the price action.  Finding support at the 0.6550 figure, bids are looking heavy as they form at the confluence of the technical floors (61.8 percent fib level from the 10/2-10/5 bull wave and the S1 Daily Pivot).  The suggestion is being confirmed by the MACD reading with Stochastic forming a neutral zone golden cross.