NZDUSD is trending higher on an ascending channel visible on its 1-hour and 4-hour chart.

Price is currently testing support and might be due for a move back to the resistance soon.

The 100 SMA is above the longer-term 200 SMA so the path of least resistance is to the upside. This signals that the uptrend is more likely to resume than to reverse. Also, the short-term moving average lines up with the channel support to add to its strength as a floor.

Stochastic seems to have pulled up from the oversold region to indicate that buyers would take over. However, the oscillator has yet to make headway north to show a pickup in buying pressure.

The Kiwi has been able to take advantage of dollar weakness for the most part of the week as risk-taking is present and demand from China could be sustained. However, economic data from New Zealand came in weaker than expected today as ANZ reported a 2.2% drop in commodity prices after the earlier 0.9% dip.

In the US, the Empire State manufacturing index slipped from 18.0 to 17.7 instead of rising to the consensus at 18.5. Today has the industrial production and capacity utilization rates due. FOMC member Mester also has a speech lined up after the release of the Fed Beige Book.

By Kate Curtis from Trader’s Way