NZD/USD bulls come up for air, Aussie CPI eyed for clues

• NZD/USD bulls moved in from trendline support.
• NZD/USD bears need to show up at key neckline resistance. 

NZD/USD is flat on the day so far following a rally from the lows of 0.6117 to the highs of 0.6177. The pair move into a resistance area in the initial balance for the week but was jittery on the back of weekend political stress related to Russia. 

The short-lived uprising in Russia had little impact on oil prices but has pushed up wheat prices, a makeup of the commodities complex that the Kiwi trades as a proxy to. 

''The Kiwi is little changed this morning after a quiet night on global FX markets and with bond yields and equity indices reasonably range-bound too,'' analysts at ANZ Bank explained.

''With no local or Aussie data scheduled today, it is likely to be another muted session, with the focus on the Australia Consumer Price Index, CPI, data due tomorrow, which will be a key input into next week’s Reserve Bank of Australia decision, which in turn, is important for the Kiwi by correlation (and clearly crucial for AUD/NZD),'' the analysts added. 

''In fact, the next 7 days look like they’ll be shaped and led by the AUD given other data due there like retail sales, and given how barren the NZ data schedule is, and with the Reserve Bank of New Zealand on hold.'

NZD/USD technical analysis

NZD/USD has left an M-formation on the chart on the front side of the bullish trendline. The price has rallied into the neckline of the formation in an almost 61.8% Fibonacci retracement from near 0.6120 support. If the bears commit now, then the trendline will come under pressure.