In terms of the technical levels, having already broken through calculated support at 0.8264, the NZD/USD will be buoyed by supportive constructs at 0.8231 and 0.8213, consistent with the calculations of the analyst team at Mataf.net. On the ascension, the exchange rate will encounter means of resistance at 0.8315, then 0.8333, and eventually 0.8666.
According to the NAB Analyst Team, “The NZD/USD may look to revisit post-float highs around 0.8400 – however, as a risk sensitive currency, it remains vulnerable to any downshift in risk appetite. In this regard, it is worth noting our risk appetite index (scale 0-100%) currently sits at 76%, its highest level since early 2011. Generally, we remain comfortable with our long-held forecast for an end of year NZD/USD at 0.8200.”
On the data front, overnight New Zealand GDP (YoY) data exceeded expectations in the second quarter by posting a figure of +2.6% against a consensus of only +2.4%. Moreover, GDP (QoQ) yielded a figure of +0.6% growth, relative to expectations of only +0.3%. The next indicator slated for release in the NZ economy will be August’s Visitor Arrivals figures later today at 22:45 GMT.