NZD/USD has surrendered gains, dips below 0.73

The Kiwi was on the front foot in early Asia following Wednesday’s rally, before failing at 0.7309 and falling back to 0.7295 levels. 

Chart driven exhaustion

The data released in New Zealand earlier today showed price increases for household purchases jumped above 1% for the first time in over two years. 

The uptick in inflation boosted RBNZ rate bets, despite which the currency pair failed to strengthen. 

Moreover, the pair has been rallying right from the start of this month. The near 90 degree rally from the January 4 low of 0.6889 appears to have led to overbought conditions/loss of bullish momentum on the technical charts. 

NZD/USD Technical Levels

The immediate hurdle is seen at 0.7311 (Oct 4 high). This is followed by 0.7370 (Sep 22 high) and 0.7403 (Nov 8 high). On the lower side, support is seen at 0.7277 (Tuesday’s high), 0.7246 (5-DMA) and at 0.72 (zero figure).