Earlier today New Zealand visitor’s arrival dropped to 15,000 representing a 1% drop as compared to May and then in the Asian session we had the Credit Card spending data released for June showing that total payments and expenditure rose only 4.1% compared to that time in the month of May. As explained earlier, this contributes immensely to inflation data which the RBNZ is working hard to increase from current sub-1 levels. With these release we saw the kiwi take a hit against the yen despite their discouraging data too-monthly industrial activity dropped by 1% in June. There is no major news from the Japan other than the expected non-scheduled release from New Zealand at a tentative time today.
But for now, a look at the chart shows a tepid response from the kiwi with stronger moves expectations latter in the coming sessions. If anything, there was no breach below the 74 support level which was at the 23.6 Fibonacci level drawn from last week’s Hi-Lo. Despite the bad news today, kiwi remained undeterred and continued to make a series of higher highs and lower highs relative to the lower BB in the 4HR chart. The stochastics are trending in the oversold territory with price action testing the resistance trend line in the weekly chart. This resistance will likely be broken today and if it does, our potential TP will be the 161.8 Fibonacci extension level in the 4 HR chart at 79.0.
Have a good trading day