NZD/USD has been quite volatile and corrective recently. The pair is currently trading under bearish pressure below the 0.7200 level. USD has been quite powerful in light of the latest positive economic reports which lead to further bearish pressure after certain correction along the way. Today the pair is quite volatile because at the beginning of the day New Zealand Cash Rate report was published alongside RBNZ Rate Statement. Today, NZ Cash rate report was published unchanged as expected at 1.75% and RBNZ is quite positive about the recent easing where lower NZD is expected to increase tradable inflation and deliver more balanced growth. On the USD side, today Quarterly Final GDP report is going to be published which is expected to be unchanged at 3.0%, Unemployment Claims is expected to rise to 269k from the previous figure of 259k, Final GDP Price Index is expected to be unchanged at 1.0%, Goods Trade Balance report is expected to show a slight change to -65.0B from the previous figure of -65.1B and Prelim Wholesale Inventories report is expected to decrease to 0.4% from the previous value of 0.6%. Additionally, FOMC Member Fischer is going to speak today on the voting of upcoming interest rates decision and future monetary policy which is expected to be quite neutral in nature as the hike is expected to be on hold till December 2017. To sum up, NZD is in favor of much lower price against USD to balance the upcoming growth which does signal further bearish pressure in this pair and gains on the USD side taking the price towards much lower support level in the coming days.
Now let us look at the technical chart. The price is currently residing below the 0.7200 resistance level which is expected to move much down towards 0.7050 level in the coming days. As the price remains below the 0.7200 and dynamic level of 20 EMA the bearish pressure is expected to continue further.