NZD/USD is brought lower, in part helped by a report earlier that the RBNZ is starting to explore more unconventional policy
The headline earlier helped to drag the pair back below its 100-hour MA (red line) and with the dollar gathering strength on the session, it is pushing price towards a test of the 200-hour MA (blue line) @ 0.6726 next.
A break below that will see sellers regain near-term control and may spell trouble up ahead for the kiwi after its stellar run over the past two weeks.
The bigger picture also shows that the run higher seems to have stalled around daily resistance at 0.6774-83. Three attempts to hold a break above that failed and we could be seeing some exhaustion in price action among buyers and the RBNZ report earlier is but convenient timing for traders to take some money off.
Of note, price looks to also threaten a test of the 200-day MA (blue line) on the daily chart.
There’s also additional reasoning to believe that the good run in the kiwi may see a bit of a pause for now, with AUD/NZD also seem to be bottoming out around 1.0400 and failing to break below the 76.4 retracement level:
The pair has been a catalyst in helping the kiwi drive higher over the past two weeks so as the tailwind here goes away, the kiwi’s good fortune has possibly met its end for now.