Currently, NZD/USD is trading at 0.7224 having posted a daily high at 0.7233 and low at 0.7220.
NZD/USD broke out with some dollar weakness at the end of the US session and rallied to the 200 smoothed sma on the hourly sticks attacking the downward correction of the Dec-Feb rally has stalled around the 0.7200 area. Neutral today. The calendar is light domestically but the Aussie could be a driver with the jobs data coming up in the session Overnight, Yellen and strong US data supported higher yields again and a strong dollar.
NZD/USD 1-3 month:
Analysts at Westpac suggested that the month ahead could see NZD/USD extending beyond 0.7500 (Sep high) if the US dollar continues to register disappointment in the Trump Administration’s policies. "Further ahead, though, the Fed’s tightening cycle plus US fiscal expansion should maintain upside pressure on US interest rates and the US dollar, pushing NZD/USD lower to 0.7000. Granted, the NZ economy is strong and dairy prices have risen, but these forces are subservient to the US dollar’s trend."
NZD/USD broke up through the 50 sma on the hourly time frame breaking yesterday's rising channel's resistance until meeting the aforementioned 200 smoothed ma on the same tie frame at 0.7229 currently. A break of 0.7237 and 13th Dec highs opens a case for a full recovery back to the 2017 highs a 0.7374. To the downside, the 50-d sma is located at 0.7113.
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