NZD/USD consolidates gains below 0.7000 after RBNZ-inspired rally


  • NZD/USD rose above 0.7000 for the first time since June 2018.
  • RBNZ is advised to add house prices to its mandate.
  • US Dollar Index turns south after closing in the positive territory on Monday.

The NZD/USD pair closed the first day of the week virtually unchanged at 0.6920 but rose sharply during the Asian trading hours to touch its highest level since June 2018 at 0.7006. The pair seems to have gone into a consolidation phase ahead of the American session and was last seen gaining 0.97% on the day at 0.6987.

RBNZ is asked to consider house prices when deciding on policy

Earlier in the day, New Zealand's finance minister, Grant Robertson, said the Reserve Bank of New Zealand (RBNZ) should think about adding the stability in house prices into its mandate.

Commenting on this development, MUFG Bank analysts argued that market participants could speculate that the housing market could overheat and "prompt the RBNZ to scale back easing sooner than major central banks thereby boosting demand for the kiwi."

Meanwhile, the upbeat market mood continues to weigh on the greenback and helps NZD/USD preserve its bullish momentum. 

Ahead of the Housing Price Index and the Conference Board's Consumer Confidence Index data, the US Dollar Index is down 0.27% on the day at 92.25. Reflecting the risk-on market environment, the S&P 500 Futures are up 0.8% on the day at 3,604.

In the early trading hours of the Asian session, RBNZ Governor Adrian Orr will be delivering a speech and investors will keep a close eye on the governor's comments on the housing market.

Technical levels to watch for

NZD/USD

Overview
Today last price 0.6985
Today Daily Change 0.0063
Today Daily Change % 0.91
Today daily open 0.6922
 
Trends
Daily SMA20 0.6794
Daily SMA50 0.6698
Daily SMA100 0.666
Daily SMA200 0.642
 
Levels
Previous Daily High 0.6969
Previous Daily Low 0.6897
Previous Weekly High 0.6952
Previous Weekly Low 0.6841
Previous Monthly High 0.6726
Previous Monthly Low 0.6546
Daily Fibonacci 38.2% 0.6941
Daily Fibonacci 61.8% 0.6924
Daily Pivot Point S1 0.6889
Daily Pivot Point S2 0.6857
Daily Pivot Point S3 0.6817
Daily Pivot Point R1 0.6962
Daily Pivot Point R2 0.7001
Daily Pivot Point R3 0.7034

 

 

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