NZD/USD snaps five-day winning streak, ignores house prices data

The bid tone around NZD weakened in Asia, opening doors for a corrective move in the NZD/USD pair following a five-day winning streak.

Trades below 76.4% Fibo of Brexit drop

At the time of writing, the pair was trading below 0.7221 (76.4% of post Brexit drop). Kiwi had almost taken back entire portion of the Brexit fall if we consider June 23 closing rate of 0.7241.

The weakness seen today appears to be chart driven. Moreover, the data released today showed House prices in New Zealand rose in June at their fastest pace of the year. However, Kiwi has chosen to ignore the data for now.

The focus now is on the Reserve Bank of Australia rate decision. Later in the day the biweekly global dairy auction would be watched out by NZD traders.

NZD/USD Technical Levels

The immediate hurdle is seen at 0.7221 (76.4% of Brexit drop), above which prices could test 0.7255 (June 23 high). A violation there could yield 0.7298 (June 24 high). On the other hand, a breakdown of support at 0.7188 (June 22 high) would expose 0.7173 (61.8% of Brexit drop + 5-DMA). Next major support is seen at 0.7140 (10-DMA).