Kiwi moved from its low level and steps into bullish trend amid the U.S Dollar Weakness. U.S. retail sales has dropped much more than expected in May but sales in April were revised sharply up and are far less above their pre-pandemic level. With spending rotating back to services from goods as vaccinations allow Americans to travel and engage in other activities, the data cemented the perception of a strong recovery in the economy.

Separate data potrayed wholesale price inflation accelerated to 6.6%, the largest gain since November 2010.

U.S. Recent data showed rising consumer prices which have raised concerns about rising inflation. But the federal officials say rising inflationary pressures are moderate and that the easiest monetary systems will last for some time. The Federal Reserve is expected to hold initial talks with its policymakers on when and how quickly it will repay the massive bond purchase program launched in 2020, the policy meeting will be later in the day.

On the other hand ‘Extraordinary’ lack of seasonal flu in New Zealand, ESR virologist says. Every year the seasonal flu influenza arrives, often just in time for winter. But right now, influenza and other respiratory illness doesn’t appear to be circulating in the community due to the successful lockdown. At the same time Australia and New Zealand started negotiating a Free Trade Agreement (FTA) with the UK at the same time.  “The urgency, enthusiasm and passion for our New Zealand exporters needs to be at the front and centre of Minister O’Connor’s agenda.”

Elsewhere China is increasingly being seen as a threat by New Zealanders but the country should continue to engage with it, according to people surveyed by the Asia New Zealand Foundation. “For the first time, more New Zealanders see China as a threat than those who view it as a friend,” the report said. At the same time investors look forward to the outcome of the U.S. Federal Reserve meeting for hints on tapering of economic support measures.

NZD/USD 4 Hour Chart:

Support: 0.7094 (S1), 0.7072 (S2), 0.7039 (S3).

Resistance: 0.7150 (R1), 0.7183 (R2), 0.7205 (R3).

The supportive economic news and lockdown plays a major role in favoring the newzealand currency and it keeps the kiwi on uptrend and traders now look for the FOMC outcome. We expect a bullish trend for NZD/USD.