NZD/USD consolidates near weekly tops on robust CPI

Dhwani Mehta FXStreet

The bullish momentum seen behind the NZD so far this week gained further traction following the release of surprisingly positive NZ inflation report, pushing the NZD/USD pair higher to fresh one-week highs.

NZD/USD on its way to 0.7200

Currently, the NZD/USD pair jumps 0.70% to flirt with weekly highs at 0.7189, extending its solid rebound from 0.7075 region. The NZD/USD pair witnessed a clear 50-pips uptick at Asian open, after NZ CPI unexpectedly rose in Q3 versus no growth expected during the same period.

The bulls retain control amid risk-on market profile as oil and metals’ prices trade higher alongside the Asian equity markets. More so, a latest RBNZ report showed that 3Q sectoral factor model inflation index rose 1.5% y/y, which further collaborated to the upbeat tone behind the Kiwi.

Next of note for the major remains the US CPI figures due later in the NA session, which will be followed by Fonterra’s fortnightly dairy auction results.

NZD/USD Levels to consider

To the upside, the next resistance is located at0.7200 (round figure), above which it could extend gains to 0.7217 (Oct 5 High) and from there to 0.7250 (psychological levels). To the downside immediate support might be located at 0.7130 (daily low) and from there to at 0.7117 (5 & 10-DMA), below which 0.7090 (daily S1) would be tested.

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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