NZD/USD: failing at a key resistance at 0.6920

Currently, NZD/USD is trading at 0.6912, up 0.10% on the day, having posted a daily high at 0.6917 and low at 0.6902.

NZD/USD made some good ground overnight and has settled into a phase of consolidation, awaiting the next catalyst in the GDT price index/dairy auction where it is tipped by the futures markets to rise moderately in world milk prices. Should such an outcome prevail, the bird could find further traction on the bid in an environment where US data keeps proving to disappoint. Today's data followed suit of last week's miss in GDP Q1 for the US and as such, the bird walked higher. 

Key developments from the NZ economy - UOB

US personal income rose by 0.2% in March, missing expectations of 0.3%. The Personal spending was flat while the core PCE price index fell by 0.2% and at the same time, the year-on-year reading came in below prior at 1.8% vs 2.1%. Then, the Markit manufacturing PMI for April arrived at 52.8 and ISM manufacturing PMI came in at 54.8, below March's 57.2. A further blow to the dollar was when US Treasury Secretary Steve Mnuchin who said that it could take up to two years to have economic growth reach 3%.

NZD/USD levels

A continuation of the upside and another break higher back towards the 0.70 handle, the previous bulls have the 17th April highs of 0.7035 is sight protecting 0.7060/70 and recent high today around the 200-d ema (0.7067). There is a double bottom at 0.7130 as the mid-Feb lows. However, first is the tough resistance here at the 12th April and 0.6920. To the downside, NZD/USD has the 0.6850 range low as a key support below the 0.69 handle. Next key support below 0.6700 is down to 0.6675 as the 29th May 2016 high.