The NZD/USD pair has entered a phase of upside consolidation over the last hour, after having staged a solid rebound towards the mid-point of 0.73 handle from NZ CPI-led slump.
NZD/USD: Will it surpass 0.7350?
The Kiwi reversed entire NZ CPI data-led slide and returned to NY tops reached yesterday at 0.7350 levels, before meeting fresh supply to now trade around 0.7335 levels, still up +0.20% on the day.
The renewed uptick seen in NZD/USD can be mainly attributed to a slump in the US dollar seen across the board, after the US Senate Republicans rejected the Obamacare repeal bill yet another time.
Earlier today, the spot plunged to 0.7264 lows after New Zealand’s CPI report disappointed markets, coming in at 0.0% versus 0.2% expectations and 0.1% last. Poor CPI figures were way below RBNZ’s forecasts and hence, poured cold water on RBNZ rate hike expectations for mid-2018.
Also, yesterday’s RBNZ deputy governor Bascand’s comments continue to remain a drag on the prices, as markets ignored better-than expected China’s GDP data. All eyes now remain on the fortnightly Fonterra’s dairy auction results for fresh impetus on the Kiwi.
NZD/USD Levels to consider
NZD/USD holds well above 0.7300, with a break above 0.7347/50 (daily high/ NY top) could open doors for a test of 0.7376 (Feb 7 high). To the downside lies 0.7216 (50-DMA) still guarding 0.7183 (Jun 15 low) and a break back below 0.7150 (psychological levels) are key near-term downside areas.
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 securities. 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 Forex 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.