NZD/USD catches a bid through 0.7150 on soft greenback

Ross J Burland FXStreet

Currently, NZD/USD is trading at 0.7135, up 0.03% on the day, having posted a daily high at 0.7159 and low at 0.7070.

Federal Reserve Evans speaking and hawkish

NZD/USD has been able to catch a bid on a weaker dollar in the US session, despite yet positive data for the US economy in the ISM-non manufacturing beating prior and expectations for November. The US dollar index is again 0.3% lower, despite the Fedspeak from Evans and Dudley that was consistent with the notion of a Fed hike on Dec 14th next week. US dollar index: Correction continues, hits 2-week lows

Analysts at Westpac explained that the US dollar's pullback accelerated overnight and has scope to run further - NZD/USD should test 0.7170.

NZD/USD 1-3 month: "The US dollar has had an impressive rise since the US election and has potential to rise further during the months ahead, not least because the Fed will probably hike in December. Against that, the NZ economy is strong and dairy prices have risen. Overall we are left with a bearish outlook for NZD/USD, targeting sub-0.70," - offered the analysts at Westpac.

NZD/USD levels

Current price is 0.7139, with resistance ahead at 0.7150 (Yesterday's High), 0.7159 (Daily High), 0.7164 (Daily Classic R1), 0.7190 (Daily Classic R2) and 0.7194 (Daily 100 SMA). Next support to the downside can be found at 0.7137 (Weekly High), 0.7136 (Daily Open), 0.7123 (Daily Classic PP), 0.7114 (Weekly Classic PP) and 0.7108 (Hourly 20 EMA).

Author

Ross J Burland

FXStreet

Ross J Burland, born in England, UK, is a sportsman at heart. He played Rugby and Judo for his county, Kent and the South East of England Rugby team.

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