Kiwi was under heavy selling and lost 35 pips just to stop at three week low at 0.6558. The China Consumer Price Index, Month over Month, came in at -0.1% for June, while the Producer Price Index, Year over Year, came in at 0% below market consensus of 0.3% in June.
On technical side the pair briefly breached the 50 day moving average but managed to rebound quickly above the 0.66 mark, disappointing and trapping the bears. Support for the pair stands at today’s low at 0.6558 and then at 0.6533 the low from June 20th. On the upside immediate resistance stands at 0.6517 the 50 hour moving average and if the pair manages to close above it might continue with an attempt to 0.6640 the 100 hour moving average. On the other side of the equation USD trading near three week high as investors await the Jerome Powell testimony for fresh cues about the next move in interest rates.Don’t miss a beat! Follow us on Twitter.