NZD/USD demand in on shoddy US and robust NZ budget

FXStreet (Guatemala) - NZD/USD is currently trading at 0.7317 with a high of 0.7340 and a low of 0.7292.

NZD/USD has seen some demand along the lows here although nothing to compromise the heavily bearish tone around the bird of late. The downside is fully in play while a phase of consolidation offers some relief to the committed bulls below 0.7318 12th May low. Some support came in for the Kiwi with the NZ Budget that offered a reasonably robust macroeconomic outlook. This coupled with some shoddy data from the US session today is offering the pair some relief also. Markit Manufacturing PMI (May) was a miss of 53.8 vs 54.5 expected as was the Philadelphia Fed Manufacturing Survey (May) failing to impress at 6.7 vs 8.0 consensus. Initial jobless claims were also a disappointment 274k vs 271 expected, and worse than previous at 264k.

Technically, the pair remains bearish while trading below the descending hourly 100 and 200 SMA's located at 0.7374 and 0.7329 and fundamentally the risks are to the downside also while the sentiment is dovish around the RBNZ's next move.

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