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


Today last price 0.6985
Today Daily Change 0.0063
Today Daily Change % 0.91
Today daily open 0.6922
Daily SMA20 0.6794
Daily SMA50 0.6698
Daily SMA100 0.666
Daily SMA200 0.642
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



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 assets. 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 Open Markets 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. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.

Feed news

Latest Forex News

Latest Forex News

Editors’ Picks

EUR/USD hits fresh one-month low amid souring market mood

EUR/USD has been extending its falls and dips below 1.21 as US retail sales badly disappointed and the worsening mood is supporting the safe-haven dollar. Markets digest Biden's stimulus plan. US Consumer Sentiment declined to 59.2 points. 


GBP/USD retreats toward 1.36 amid fresh dollar strength

GBP/US has pared its gains and falls toward 1.36 as the dollar gains ground. The UK economy shrank by 2.6% in November, better than estimated. The UK is ramping up its vaccination campaign and PM Johnson is pressured to ease the lockdown. 


Gold extends sideways grind near $1,850

The XAU/USD pair registered small daily gains on Thursday but struggled to extend its recovery amid a lack of significant fundamental drivers on Friday. As of writing, the pair was up 0.15% on a daily basis at $1,849.

Gold news

Forex Today: Markets “sell the fact” on Biden's stimulus, dollar rises, retail sales eyed

Markets are on the back foot after Biden hinted about tax hikes while introducing stimulus. The safe-haven dollar is edging higher despite Powell's pledge to keep monetary policy accommodative. 

Read more

DXY breaks above key downtrend, eyes move above 91.00

USD has been strongly supported on what has shaped up to be a very much risk off final trading day of the week. Most G10/USD pairs have seen significant weakness, aside from CHF/USD and JPY/USD, given that the two currencies are also considered “safe havens”.

US Dollar Index News