NZD/USD: remains within familiar 0.7050/00 range, what will it take to break out?
|Currently, NZD/USD is trading at 0.7083, up 0.02% on the day, having posted a daily high at 0.7090 and low at 0.7079.
NZD/USD has been confined to a tight range while the bears take a breather within the descending trend from 0.7434 20th Sep highs to 0.7055 the recent low from the business done on the 9th October.
FOMC Minutes: Many Fed officials saw another rate hike warranted this year
"Until the political clouds clear, markets will trade nervously, and with a mild downside bias. But even so, with the economy starting to show a few late-cycle wobbles and the RBNZ expected to be a reluctant participant in the global removal of monetary policy stimulus, any pop higher is something we would sell into," analysts at ANZ explained.
NZD/USD 1 day:
The analysts at Westpac expect further consolidation between 0.7050 and 0.7100 following a 5% fall over the past month and the recent stall in the USD.
NZD/USD 1-3 month:
Their forward outlook remains with the RBNZ which they expect to be firmly on hold and if the US dollar rises on the delivery of a Fed interest rate rise in December, then they say the NZD/USD could fall to 0.70 by year-end.
NZD/USD levels
Within the vicinity of 0.7055, bears eye a break of the psychological 0.7000 level to target 0.6908, 11th April low. On the flipside, the bird needs to get through 0.7240 to confirm a significant correction is in place of which a break of could open doors towards 0.7315. 0.7370 (the 9th Aug high) is the next key hurdle on the upside and a break there would solidify a bullish trend back towards 0.7522 and the YTD highs so long as there are closes on the 0.74 handle and beyond the post FOMC kneejerk highs of 0.7434.
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