HomeContributorsFundamental AnalysisNew Zealand Dollar In A Tight Range After Weak Retail Sales Data

New Zealand Dollar In A Tight Range After Weak Retail Sales Data

The price of crude oil held steady in the American and Asian sessions after relatively positive inventories numbers. According to the Energy Information Administration (EIA), the number of inventories declined by more than 6 million barrels last week. Earlier data by the American Petroleum Institute (API) showed that the inventories fell by more than 3.5 million barrels. The two numbers were better than estimates. The price is also steady as traders wait for the upcoming stimulus by the American government.

The US dollar declined after relatively weak US inflation numbers published yesterday. According to the statistics bureau, the headline consumer price index (CPI) rose from 0.2% to 0.3% in January. This led to an annual increase of 1. 4%, below the estimated 1.5% and the previous month’s 1.6%. In the same period, the core CPI also fell from 1.6% to 1.4%. These numbers came a few days after the statistics office published weak nonfarm payroll data. Later today, the currency will react to the latest jobless claims numbers.

The New Zealand dollar wavered against the US dollar after weak electronic card retail sales. According to the statistics agency, these sales dropped by 0.4% in January after falling by 0.6% in the previous month. This decline led to an annualised increase of 1.9%, which was relatively lower than the previous month’s increase of 3.5%. Electronic card sales are important because they are usually a proxy for the overall sales in the country.

EUR/USD

The EUR/USD pair wavered in the American session after the relatively weak US inflation data. It is trading at 1.2120, lower than yesterday’s high of 1.2143. On the four-hour chart, the price is also forming a bullish flag pattern. It is also slightly above the 25-day and 15-day exponential moving averages. Therefore, the pair may continue consolidating within the current range before breaking-out higher.

GBP/USD

The GBP/USD pulled back after rising to a multi-year high of 1.3865. It is trading at 1.3834, which is also substantially higher than the previous resistance level at 1.3757. On the four-hour chart, this price is also above the short and longer simple moving averages and the Ichimoku cloud. Looking ahead, the pair may resume the uptrend as bulls attempt to move above yesterday’s high of 1.3834.

USD/CHF

The USD/CHF price tumbled after the weak US inflation data. It declined from this week’s high of 0.9045 to below 0.8900. On the four-hour chart, the price has moved below the moving averages while the Relative Strength Index (RSI) and the MACD have continued to decline. The pair is likely to continue falling as bears attempt to move below yesterday’s low of 0.8900.

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