NZD/USD breaks higher to test 4-month tops on notable USD selling

Dhwani Mehta FXStreet

After a brief phase of upside consolidation seen in early Asia, the NZD/USD pair broke higher and rallied hard last hour, reaching the highest levels seen since Feb.

NZD/USD cheers upbeat NZ data

The latest upsurge in the spot can be mainly driven by fresh selling seen in the greenback against its major peers, with the USD index now hitting fresh eight-month lows near 96.50 levels.

Moreover, New Zealand’s business confidence survey published by ANZ jumped to fresh nine-month high at 24.8 versus 14.9 previous, which further added to the renewed uptick seen in the Antipodean.

Furthermore, the higher-yielding currency benefits from persisting risk-friendly market environment, with oil and stock prices trading firmer so far this session. Meanwhile, NZD/USD is on a two-day winning streak, and remains on track for seventh consecutive weekly rise.

Focus now shifts to fundamentals, with the US final GDP and jobless claims due on the cards later today, which will have a significant impact on the buck.

NZD/USD Levels to consider

NZD/USD managed to take-out 5-DMA at 0.7295 upside target, with a test of 0.7350 on the cards. Beyond which 0.7376 (Feb high) will be on sight. To the downside, 0.7273 (10-DMA) guards 0.7248 (20-DMA) and a break back below 0.7200 are key near-term downside areas.

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

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