NZD/USD: can the bird's advance continue and target 2017 highs?
|NZD/USD is currently trading at 0.7283 with a high of 0.7285 and low of 0.7276.
NZD/USD is consolidating in a quiet start to the week. There is a lot of focus is on the bird at the moment considering its recent performance and relentless advance. Against the US dollar, the bird is just shy of a five cent advance from the depths of the 0.68 handle with mid-May's strong uptrend to recent highs. At the same time, the bird has been in a strong uptrend vs the Aussie and the cross is now down to 1.0371 the low.
The week ahead: United States - Nomura
However, the bird may be in for a correction on overbought territory and fundamentally, the economic developments since the RBNZ’s previous policy statement in May have been broadly neutral from a policy perspective. Analysts at Westpac suggested that the RBNZ is unlikely to find itself under pressure to raise rates by this time next year. Therefor, the weeks ahead will determine the underlying trend and all eyes will be on the US economy in respect to the recent conflicting realities in the US economy vs the Fed's objectives, determining the course of the dollar for the rest of the year.
NZD/USD levels
NZD/USD managed a score through the 0.7280 mark and is anchored just below the psychological 0.73 handle having made a high last week at 0.7318 and strong resistance there. 0.7374 was the high for 2017. To the downside, 0.7250/80 area guards 0.7200 guards 0.7145 and a break back below 0.7080/90 are key near-term downside areas. On the wide, the 0.7375 YTD highs are a key target to the upside and to the downside, a break below 0.7080/00 opens 0.6970.
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