NZD/USD: eyes on the 0.7050 psychological level
|Currently, NZD/USD is trading at 0.6995, up 0.02% on the day, having posted a daily high at 0.6999 and low at 0.6990.
NZD/USD is consolidating the dollar weakness after a strong rally from 0.6880 last week and an extension of that move overnight. There were no significant shifts in tone or data overnight and thus the usual ranges apply. Analysts at Westpac explained that the weakening US dollar continues to lift NZD/USD, towards 0.7050 today.
Forex today: dollar remains on the back-foot, DXY -0.16% now below 97 handle
NZD/USD 1-3 month:
The analyst's longer term outlook applies the Fed’s tightening cycle plus US fiscal expansion that they said should maintain upside pressure on US interest rates and the US dollar, pushing NZD/USD below 0.6700 by year end. "However, local factors are mostly supportive: a strong NZ economy, higher dairy prices, and higher inflation; but the RBNZ less convinced (15 May)."
NZD/USD levels
The 0.7000 level is now in play. The 17th April highs of 0.7035 ahead of 0.7060/70, are the next major resistance area through the 200-d ema (0.7032). The double bottom at 0.7130 as the mid-Feb lows could be a strong area of resistance for today. To the downside, 0.6950, 0.6900 and 0.6880, where the 4hr ma's gather along with 0.6840 are the near term supports.
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.