NZD/USD: testing key 0.7250 resistance ahead of Tokyo session, will it give?
|Currently, NZD/USD is trading at 0.7252, up 0.12% on the day, having posted a daily high at 0.7256 and low at 0.7238.
US PPI's miss reviewed - Nomura
NZD/USD has caught a bid in early Asia up to test 0.7250 resistance on the back of the opposition Labour Party in NZ saying that it will not introduce new taxes before 2021. Meanwhile, in the US session, dollar bulls were lifted by Trump's administration voicing that it is time for action in respect to the US tax reforms.
U.S. House Speaker Ryan: Goal is to have tax reform enacted into law by year's end
NZD/USD 1 day:
For the day ahead, analysts at Westpac explained that there is potential to slip to 0.7200 if the US dollar’s multi-day rebound persists. "US CPI data today will be key, with the NZ election poll an additional risk," the analysts added.
Market wrap: US tax reform guidance fuelling bullish market - Westpac
NZD/USD 1-3 month:
Further out, the analysts at Westpac suggest that should the RBNZ remains firmly on hold, as they expect, and the US dollar rises on tighter Fed policy, then NZD/USD could fall as far as 0.70 by year end.
NZD/USD levels
To the upside, and a break of 0.7250 opens 0.7320, then 0.7337 recent highs and lastly 0.7370 (9th Aug high) that are the next targets in the near term. To the downside,0.7220 that guards 0.7195 as the recent low ahead of the daily cloud base that is located at 0.7139. 0.7127 is the June 6 low and 0.7100 is a key psychological level.
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