NZD/USD, bulls have reclaimed positive territory in the mid 0.73's despite dollar rally

Currently, NZD/USD is trading at 0.7350, down -0.07% on the day, having posted a daily high at 0.7366 and low at 0.7348.

Forex today: Fed proves to market it means business, regardless, dollar soars

NZD/USD was a muted reaction to the inline New Zealand Q2 GDP at 0.8% q/q vs the expected 0.8% vs prior 0.6% that was revised up from 0.5% and 2.5 % y/y, also of which was in line with expected 2.5% vs the prior 2.5%.

The bird has been climbing back since the initial knee-jerk reaction to the inline FOMC outcome and in a minor recovery of the move, the bird climbed from 0.7315 lows to 0.7366 the high in early Asia.  With the FOMC now digested, the focus, for the near term at least, turns to the New Zealand election this weekend coming where it is possible that perceived political risk may weigh on the NZD in the near term.

NZD/USD levels

Trading at 0.7350 currently, to the upside, a break of 0.7370 (9th Aug high), the momentum 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.

To the downside, a break of 0.7310 and 0.7294, as the 23.6% Fib of 0.7132/0.7344 rally with a subsequent break of recent support at 0.7280, and then 0.7220, would expose 0.7195 as a recent low. 0.7127 is the June 6th low and 0.7100 is a key psychological level.