NZD/USD: drifting in narrow range between key daily-sma's
|Currently, NZD/USD is trading at 0.7160, down -0.07% on the day, having posted a daily high at 0.7168 and low at 0.7159.
NZD/USD has dropped back in the last hourly sticks a small fraction from recent highs and is catching a slight bid. NZD/USD has otherwise been better bid from 0.7132 lows overnight and falling just short of the 50-1hr sma at 0.7167. Fundamental news was cross-supportive - iron ore rising 2.7% to $94.86( the highest since Aug 2014) while the GDT dairy auction recorded a 3.2% decline, eventually taking its toll on the bird. Analysts at Westpac suggest that momentum remains negative and this they are targeting a break below 0.7130 during the days ahead.
NZD/USD 1-3 month:
The Fed’s tightening cycle plus US fiscal expansion should maintain upside pressure on US interest rates and the US dollar, pushing NZD/USD down to 0.7000 or lower. Granted, the NZ economy is strong and dairy prices have risen, but these forces are subservient to the US dollar’s trend.
NZD/USD levels
NZD/USD is in a phase of consolidation on the 4hr sticks stuck in a 15-pip range between 0.7150 and 0.7167. The price has been capped within the descending trend's resistance from 0.7374. A break lower could open up risk to 0.7050 below to 50-day sma at 0.7140.
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