NZDUSD has been impulsively bearish throughout the week taking the price all the way down from 0.7050 to 0.6890. Today, NZD Building Consents report was published with a negative figure at -1.8% which previously was at 17.2% and Trade Balance report was also not quite as forecasted at 332M which was expected to be at 375M. Besides, ANZ Business Confidence report was also published today which did show a bit of change at 11.0 which previously was at 11.3. On the other hand, on the USD front Flash GDP report is due today, which is expected to show a decline to 1.3% which previously was at 2.1%. Employment Cost Index is expected to show a slightly better value of 0.6% which previously was at 0.5%. Among the other events in the US is FOMC Member Brainard is about to speak today about key interest rates and further monetary policies. The market is likely to be quite volatile today during the US events. So a daily close today will help to predict a further dynamic in this pair.
Now let us consider the technical view. The price is currently residing just below the important price level of 0.6890. Yesterday, the market closed with an indecision candle ahead of today's NZD and USD events. If the price remains below the resistance level of 0.6890 with a daily close today, then we can expect the price to move down to 0.6700 support level. On the other hand, if the price closes above 0.6890 level with a daily close, then we may see the price moving further up towards 0.6980 level. A daily close today is needed to predict a further move in this pair.
