NZDUSD 19-01-2018 Intra-day analysis

Daily Forex Market Preview, 19/01/2018

The U.S. dollar was drifting lower as the dollar index weakened due to U.S. politicians cutting it close with passing the spending bill to avoid a government shutdown. While the House passed the bill yesterday, the Senate must now approve the spending bill in order to avoid the shut down. The USD was also hit by weaker housing starts and Philly Fed manufacturing index.

Earlier in the day, China’s GDP beat expectations rising 6.8% on the quarter and posting a 6.9% annualized GDP growth for the year ending 2017.

Looking ahead, the economic calendar is light. The UK’s retail sales report will be coming out but is expected to show a decline of 0.8% for the month of December.

NZDUSD intra-day analysis

NZDUSD (0.7302): The New Zealand dollar continues to trade flat around the 0.7300 handle with the currency pair failing to close any higher. This consolidation could keep the NZDUSD trading flat in the near term. This also suggests however, that the NZDUSD could be ripe for posting a correction. Support at 0.7160 remains in view to the downside as it marks a horizontal support level as well as the break out level from the falling trend line.