NZD/USD Price Analysis: Bulls take charge towards RBNZ highs, eye a break of 0.5800
|- NZD/USD is breaking towards the RBNZ highs on Thursday.
- A move above 0.5800 will open risk to the price imbalance between 0.5820 and 0.5835 on the way to 0.5850.
NZD/USD crash-landed mid-week, tumbling out of the blue skies made on the back of the Reserve Bank of New Zealand's hawkish hike of 50bps. However. the US dollar has found its feet again and the DXY index was last seen dipping below 111.00 but it had been as high as 111.735 on Wednesday.
A tear in US yields has helped to prop up the US dollar as the money markets to price out overall optimistic speculation over a Federal Reserve pivot. The yield on the US 10-year note was up a high of 3.78%. It has come under some pressure in the Tokyo session, however:
The yield is resisted but the M-formation is bullish. This in turn could put a floor in the downside for the greenback and weigh on the bird going forward:
DXY H1
The price of the index is extending the downside in Asia which may give rise to a bullish continuation on the kiwi:
NZD/USD H1
The bird is breaking towards the RBNZ highs on Thursday and a move above 0.5800 will open risk to the price imbalance between 0.5820 and 0.5835 on the way to 0.5850.
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