KIWI TUMBLES AFTER A LONG CONSOLIDATION
The price of the New Zealand dollar has shown a strong descending movement after a long consolidation near the level of 0.7265. The trigger for the massive sell-off was the report on consumer spending via electronic cards that in June remained at the same level after the fall by 0.4% in May. Experts forecasted an increase of 0.8%.
Comparing to the same period last year, growth of retail sales using e-cards slowed to 4.5%, which is 0.7% worse compared to the previous month. Additional pressure on the quotes came from the US dollar strengthening due to strong macro data from the labor market in the US. Today the mood of traders will be impacted by reports from the US on NFIB small business index at 10:00 GMT, JOLTS job openings and wholesale inventories at 14:00 GMT.
Investors are waiting for tomorrow’s speech by the Fed’s chairwoman Janet Yellen which may give some clues about the possibility of another interest rate increase in the US before the year ends. After testing the lower boundary of the descending channel, we have seen the price rebound that may continue to 0.7250-0.7265. Breaking through the support at 0.7220 will likely lead to a fall to 0.7190 and 0.7150.