NZD/USD: a fade above 0.73 handle in a turn of sentiment?
|Currently, NZD/USD is trading at 0.7495, up 0.13% on the day, having posted a daily high at 0.7500 and low at 0.7483.
NZD/USD is perking up a tad in the early hours of Asia's final session for the week where the dollar has made a round turn on the commodity bloc and higher beta currencies.
The US session has proven the resilience of the greenback and bets remain on the table for a December hike, with percentage odds slightly higher than yesterday after the FOMC outcome. Yields were reflecting the market buying into the Fed's mantra around scaling down the balance sheet when they were preparing investors for guidance to come in September.
Forex today: dollar makes a comeback, yields reflect FOMC balance sheet reduction hints
"We favour fading strength above 0.73," explained analysts at ANZ. "Legs of support are to be respected but the market is massively long, the tenor of US data is improving, the Fed is on track to shrink its balance sheet and the RBNZ’s view of the inflation world (there is little) completely validates its cautious/neutral stance. NZ election around the corner noted the analysts at ANZ.
NZD/USD levels
On the bid, the next resistance is 0.7480. 0.7560 is the post FOMC high. tot he downside, however, 0.7460 was Friday's 10-month high and 0.7485 was the September high where bulls are collecting the bid currently with slippage to 0.7480 the o/n low. Below there, the next supports are 0.7459, 0.7400, 0.7386, 0.7280, (11th July high), 0.7205/06 June 22/21 lows; 0.7186 June 15 low; 0.7150 June 5 high; 0.7127 June 6 low. On the wide, on a break below 0.7080/00 opens 0.6970.
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