The NZDUSD pair ticked lower on Monday and was trading 0.15% weaker during the London session, hovering around 0.7070.
Traders sold the Antipodean currencies on Monday as Chinese PMIs came out mixed and the ANZ business confidence indicator worsened further to -23.4 from -20.0 previously. This indicates business on New Zealand are still pessimistic, which dragged the NZD currency lower.
Later in the day, traders will focus on some US data, including the core PCE price index and personal spending and income numbers. Additionally, pending home sales are projected to slow markedly to 0.6% from 3.1% in the previous month and the Chicago PMI index is forecast to improve to 58.2 from 57.4.
The resistance is seen at the upper line of the current consolidation phase, which is located at 0.71. If broken, kiwi could stage a relief rally, targeting 0.71600, where previous lows are located.
On the other hand, the support is at the lower line of the mentioned consolidation phase at 0.7040 and if not held, bears could push the NZDUSD pair toward the psychological level of 0.70. In all cases we strongly recommend to have rigorous money and risk management.
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