NZD/USD: small bid in otherwise bearish drift, supported by 20 4hr sma
|Currently, NZD/USD is trading at 0.7052, down -0.08% on the day, having posted a daily high at 0.7061 and low at 0.7044.
NZD/USD has caught a small bid despite disappointing data in early trade. New Zealand Building Permits s.a. (MoM) declined to -7.6% in April from previous -1.8%. Markets are thin today with dual holidays that took place overnight and China and HK are closed in Asia today. There has been some choppiness due to the lack of liquidity but round turns have been tight on the short term sticks. For the day ahead, it is feasible to target the upside and 0.71 handle according to analysts at Westpac that say the bird retains positive momentum.
Fed's Bullard: Rate close to an appropriate rate
NZD/USD 1-3 month:
Further out, the analysts argue 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 (25 May)."
NZD/USD levels
NZD/USD's 20 4hr sma at 0.7047 today has been supporting the ascending channel. 0.7080 is the near-term resistance before 0.7100 and 0.7148. To the downside and below the 20 4hr sma lies 0.7000, 0.6980 and the 50 daily sma at 0.6952 are the key 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.