In terms of the technical levels, the NZD/USD is currently testing resistance at 0.8334. However, a break above this level will activate additional resistances at 0.8369 and 0.8432, consistent with the calculations of the analyst team at Mataf.net. In the event of a consolidation movement, the exchange rate will encounter means of support at 0.8236, then 0.8173, and eventually 0.8138.
According to the Research Analyst Mike Jones at BNZ, “The kiwi continues to draw support from the fact the NZ economy remains in better shape than most. “We believe positive relative growth and interest rate differentials will support the NZD through to mid 2013 – our end-2012 NZD/USD forecast is still 0.8200.”
On the data front, there are no releases scheduled from New Zealand or the United States today. Next week, investors will anxiously await the reporting of Trade Balance statistics in the NZ economy (Tuesday September 25), which looks to build on a strong GDP report released earlier this week.