Kiwi hovering above key support near 0.8050

The Kiwi is edging lower during the Asia session, down another 20 pips at 0.8078 and sitting just above the key support level of 0.8050 which held numerous times last week.

The upcoming week will feature some important economic data out of NZD, including Builiding Permits, RBNZ Business Confidence, and Private Sector Credit. According to Mike Jones, Currency Strategist at BNZ, “Thursday’s building consents for April should bounce back strongly from March’s 9.1% drop, a figure that was impaired by very low apartment numbers as well as trading day impacts. A double digit gain isn’t out of the question in these wobbly month-to-month numbers. More important is that a decent bounce in April would keep the strong underlying growth trend intact. April’s credit aggregates will be worth a look too, to gauge the pressure that’s building on the RBNZ to taper the degree of interest rate stimulus it is currently underwriting.”

The FXStreet.com trend index remains slightly bearish on the daily chart, while the ob/os index reads neutral. Both short term moving averages and the RSI (14) remain in bearish set up on the daily chart.Initial support sits at 0.8050 (support from last week), followed by 0.8006 (low price from May 23rd). Initial resistance sits at 0.8129 (the 9dma).