NZD/USD finds support above 0.7200, back to the 0.7250 area

Kiwi among top performers of the week amid a hawkish RBNZ.
NZD/USD remains capped by 0.7300, supported above the 20-day moving average.

Matías Salord FXStreet

The NZD/USD bottomed at 0.7212 on Friday amid a rally of the US dollar, and then it rebounded, rising back to the 0.7255 area. It is hovering around 0.7250, holding onto weekly gains supported by the Reserve Bank of New Zealand (RBNZ) meeting.

On a volatile Friday, the US dollar pulled back during the American session and trimmed losses, favoring the rebound in NZD/USD. The DXY hit weekly highs near 90.50 and tend dropped back toward 90.00 following US economic reports.

The kiwi finished mostly higher across the board after the RBNZ offered a hawkish surprise in their statement, suggesting they plan to raise interest rates as early as the second semester of 2022. The key event next week, will be the US employment report on Friday.

Analysts at ING think the next step by the RBNZ will be to signal QE tapering and that the new hawkish bias is set to provide extended support to the New Zealand dollar. “A general risk-positive environment may allow NZD/USD to move above 0.7300 next week.”

During the week, the NZD/USD failed again to hold above the 0.7300 critical barrier and pulled back. The bias points to the upside while above 0.7120.

Technical levels

NZD/USD

Overview
Today last price	0.7251
Today Daily Change	-0.0041
Today Daily Change %	-0.56
Today daily open	0.7292

Trends
Daily SMA20	0.7219
Daily SMA50	0.7145
Daily SMA100	0.7179
Daily SMA200	0.7

Levels
Previous Daily High	0.7312
Previous Daily Low	0.7266
Previous Weekly High	0.7272
Previous Weekly Low	0.7151
Previous Monthly High	0.7287
Previous Monthly Low	0.6945
Daily Fibonacci 38.2%	0.7294
Daily Fibonacci 61.8%	0.7284
Daily Pivot Point S1	0.7268
Daily Pivot Point S2	0.7244
Daily Pivot Point S3	0.7222
Daily Pivot Point R1	0.7314
Daily Pivot Point R2	0.7336
Daily Pivot Point R3	0.736

Author

Matías Salord

FXStreet

Matías started in financial markets in 2008, after graduating in Economics. He was trained in chart analysis and then became an educator. He also studied Journalism. He started writing analyses for specialized websites before joining FXStreet.

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