• The kiwi appreciates for the sitch day in a row to reach levels past 0.7200.
  • A higher appetite for risk buoys the NZD and hurts the US dollar.
  • NZD/USD: Seen appreciating to 0.7462/07569 – Commerzbank.

The New Zealand dollar has appreciated further on Wednesday, breaching the previous four-months high,  at 0.7170, to explore prices above 0.7200 for the first time since June. The pair is extending its rally for the sixth consecutive day favored by a somewhat weaker US dollar.

The kiwi appreciates on a risk-on session

A string of positive quarterly earnings, with better-than-expected quarterly earnings figures in the Healthcare sector, following upbeat results in the banking sector last week, have buoyed market mood and offset concerns about inflation and supply-chain bottlenecks.

The S&P 500 Index is rallying for the sixth day in a row on Wednesday, pushing against year-to-date highs at 4.545 buoyed by better-than-expected quarterly earnings of the insurance company Anthem and the pharmaceutical Abbott Laboratories, with all eyes on Tesla’s results, which are expected to release record-high earnings in spite of supply-chain restrictions.

Furthermore, US Treasury yields’ rally, boosted by expectations of an imminent announcement of QE tapering by the Federal Reserve, seems to have taken a breather. Other major central banks, namely the Bank of England and the Bank of Canada, are suggesting the possibility of accelerating their monetary normalization plans to tackle high inflation and are pushing the Fed out of the limelight.

In this backdrop, the US Dollar Index, which measures the value of the dollar against the most traded currencies, has extended its retreat to 93.50 area, 1% below the one-year high, at 94.50, hit last week.

NZD/USD is aiming towards 0.7462/0.7559 – Commerzbank

From a technical perspective, Karen Jones, Team Head FICC Technical Analysis Research at Commerzbank sees further upside potential on the pair and points out to the 0.7462/0.7559 area: “NZD/USD yesterday broke above the 2021 downtrend and its 200-day ma and its 55-week ma at 0.7101/04, this was one tough nut to crack and the break above here should lead to some further dollar weakness (…) Target 0.7462/0.7559 long-term pivot.” 

Technical levels to watch

NZD/USD

Overview
Today last price 0.7203
Today Daily Change 0.0049
Today Daily Change % 0.68
Today daily open 0.7154
 
Trends
Daily SMA20 0.6985
Daily SMA50 0.7009
Daily SMA100 0.7022
Daily SMA200 0.7101
 
Levels
Previous Daily High 0.7173
Previous Daily Low 0.7079
Previous Weekly High 0.7078
Previous Weekly Low 0.6912
Previous Monthly High 0.7171
Previous Monthly Low 0.6859
Daily Fibonacci 38.2% 0.7137
Daily Fibonacci 61.8% 0.7115
Daily Pivot Point S1 0.7098
Daily Pivot Point S2 0.7041
Daily Pivot Point S3 0.7004
Daily Pivot Point R1 0.7192
Daily Pivot Point R2 0.7229
Daily Pivot Point R3 0.7286

 

 

 

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