NZD/USD: bird resilient on 0.70 handle to dollar's come back attempts
|Currently, NZD/USD is trading at 0.7047, up 0.04% on the day, having posted a daily high at 0.7051 and low at 0.7043.
NZD/USD has been consolidating the recent action in the greenback on the back of the healthcare bill failings by the GOP. There was some renewed optimism that markets jumped on overnight on Wall Street in respect to the possibility of tax cuts being fast tracked on the GOP's agenda, but overall, uncertainty is rife. The greenback and stocks made back some ground on recovery attempts but the bird only gave back 30 pips or so.
Forex today: dollar fights back, Wall Street buying GOP's tax reforms noise
Meanwhile, with the RBNZ well and truly sidelined (confirmed by last week’s OCR Review Statement) and economic news minor until the mid-April CPI release, analysts at Westpac predict that the NZD/USD is likely to be mainly a reflection of US dollar behaviour."
Wall Street drops amid raising concerns over Trump's agenda
3 months ahead:
On a medium term view, the analysts at Westpac suggested that against a backdrop of large oscillations in NZD/USD during the past six months, we err on the side of negativity for the next few months. "Our main rationale remains our expectation the US dollar will resume its trend higher amid a tighter Fed and stronger US economy. We target 0.6900."
NZD/USD levels
NZD/USD's key first support is at 0.7034 the 50 sma on the hourly guarding 0.7000/16. The next downside levels are 0.6950/60 and key supporting areas guarding 0.6880 and March lows. On the upside, a drive higher targets the double-bottom of potential resistance at 0.7130 on the 4hr chart in mid-Feb and late Fed business. 0.7245 comes as the late Jan/early Feb support and double top resistance Feb 16th and 23rd.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.