NZD/USD circles $0.7323, S&P affirms NZ AA rating

• NZD/USD quiet through Asia.
• S&P affirms NZ bonds at AA, outlook stable.

NZD/USD traded sideways in a 24 pip range through Asia today, bouncing between $0.7337 and $0.7313, trading within Monday's high-low for the day.

The S&P affirmed New Zealand's sovereign debt with a AA rating with a stable outlook into the future. During Monday trading New Zealand also reported an upside swing in demand for exports in December that surprised market forecasts, beating the expected reading of -NZ$125 million, reporting a NZ$640 million surplus.

NZD/USD can expect heavy risk reactions from the US Dollar through the week, with President Donald Trump giving his State of the Union Address tomorrow at 2 am GMT, with US Non-Farm Payrolls dropping on Friday to end the week.

NZD/USD Technicals

The Kiwi has declined from last week's four-month market high of $0.7436, retreating into a heavy support/resistance line at $0.73410. Intraday traders will no doubt be looking for a break above $0.7337 or below $0.7318 to set the directional tone heading into the London market session. Price is trading comfortably above the 200-day SMA, which remains flat, and long-term traders should note that the NZD/USD Weekly chart is fairly range-bound, pricing in a strong resistance level at $0.7370.