NZD/USD fails to get above the 200-hour moving average
The kiwi may be leading gains in the currencies space but so far the upside move has failed to gain much needed traction to break higher. NZD/USD broke above the 100-hour MA (red line) earlier but the move to the upside runs into resistance from the 200-hour MA (blue line) and that's proving to be one technical level too much for buyers.
Sellers are leaning on that for the time being, preventing near-term bias from turning more bullish. With equities sentiment still tepid, it's making for a bit of "neither here nor there" moment for the pair as markets continue to look for direction.
US equity futures are trading a little lower on the day - E-minis down 0.3% - but there's no major panic across markets just yet. Mainland Chinese stocks are extending losses into the close and that's never a healthy sign but sentiment isn't that badly beaten up just yet as we start the new week.
For now though, I'd be cautious of any further upside move in the kiwi as long as risk remains tepid as such.
