Kiwi Approaches 200-day Average
17 March 2022
The NZDUSD pair, also known as the Kiwi, was up for the third day, gaining 0.2% ahead of the US session and testing the major resistance zone near 0.6850.
In the US, data showed that industrial production fell to 0.5% in February, down from 1.4% in January. At the same time, capacity utilization ticked higher from 77.3% to 77.6%, but below expectations of 77.8%.
Additionally, initial jobless claims improved from 229,000 to 214,000, setting the 4-week average at 223,000 from 231,750 previously. Continuing claims also fell to 1.419 million from 1.49 million a week ago.
As previously said, the Kiwi is trying to breach the powerful resistance at 0.6850. If bulls are successful, we can see a quick run toward the 200-day average (the green line) at 0.6915.
On the downside, the support is seen at the 50-day moving average (the purple line) at around 0.6730, before another strong demand zone of previous lows near 0.67.
Yesterday's US rate hike failed to spur any demand for the greenback as investors continue to assess the situation in Ukraine as the primary driver of the financial markets.