NZD/USD: downside risks prevail to 0.6800, US dollar unchanged but better bid

Currently, NZD/USD is trading at 0.6901, down -0.01% on the day, having posted a daily high at 0.6906 and low at 0.6901.

NZD/USD is consolidated on an unchanged dollar for the US session, despite a series of last minute data from the US not painting such a rosy picture for Q4 GDP, estimated to be lower than GDP Q3.

However, first, US GDP for Q3 was revised higher from 3.3% to 3.5% annualised (vs 3.3% expected). However, durable goods orders fell 4.6% in Nov (-4.8% expected) and personal income was unchanged in Nov (+0.3% expected), personal spending up 0.2% (0.3% expected). Finally, the PCE deflator was flat in Nov (+0.2% expected), for a steady yoy rate of 1.4%. As a result, the Atlanta Fed downgraded its model prediction for Q4 GDP from 2.6% to 2.5%.

NZD/USD levels

"NZD/USD 1 day: Momentum remains negative, the next target around the 0.6800 area. Chartists will note the bearish neckline at 0.6975 which was broken decisively this week," explained analysts at Westpac. With spot trading at 0.6902, we can see next resistance ahead at 0.6902 (Daily Open), 0.6905 (Monthly Low), 0.6905 (Weekly Low), 0.6906 (Daily High) and 0.6906 (Hourly 20 EMA).Support below can be found at 0.6901 (Daily Low), 0.6888 (Yesterday's Low), 0.6885 (Daily Classic S1), 0.6864 (Daily Classic S2) and 0.6845 (Weekly Classic S1). 

Focus now switches to Europe for 2017:

European Economic Forecast 2017: An EU under siege from within, call in the populists!