Bullish momentum in the NZD/USD pair gathered pace but was not strong enough to cut through offers in the range of 0.73-0.7325 despite hawkish comments from RBZN’s Wheeler earlier today.
July high is a tough nut to crack
Area around July high of 0.7325 has repeatedly acted as a strong hurdle this month. The bid tone around Kiwi gathered pace after RBNZ governor Wheeler, in his speech, said there is no need for rapid policy easing as such a move would inflame property market and result in unsustainable growth.
In response to these hawkish comments, the spot rose from 0.7260 to 0.7326 before trimming gains to trade around 0.7295 levels.
NZD/USD Technical Levels
A violation at 0.7339 (Aug 11 high) would open doors for 0.7395 (May 22, 2015 high), breach of which shall open doors for 0.7422 (Feb 24, 2015 low). On the lower side, break below 0.7260 could yield 0.7209 (previous day’s low), under which the spot could target 0.7171 (23.6% of 0.6675-0.7325).
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