NZD/USD: if 0.7250 holds, prospect for 0.73 handle remain on the cards
|Currently, NZD/USD is trading at 0.7263, down -0.09% on the day, having posted a daily high at 0.7272 and low at 0.7263.
NZD/USD has been carving out the downside overnight after Asian prices and supply came in at 0.7344, an area that analysts at Westpac explained was achievable yesterday at the June high of 0.7320. The price exceeded that first resistance.
Forex today: volatility over Fed and ECB headlines, euro rockets to fresh daily highs
However, the dollar was in favour until Draghi's comments and the bird was sold off heavily on the back of a recovery in US yields that eventually climbed up over 3% to breach 2.20% in the ten-year notes.
NZD/USD 1-3 month:
Further out, this theme is likely to continue according to the analysts at Westpac who said that the Fed’s tightening cycle plus US fiscal expansion should eventually reassert upside pressure on US interest rates and the US dollar, pushing NZD/USD below 0.6800 by year end. US factors should outweigh local factors which are mostly supportive.
NZD/USD levels
NZD/USD managed a new aforementioned high. On a continuation of the bid, there is scope for 0.7374 being the high for 2017. To the downside, 0.7250 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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