NZD/USD jumps towards 0.7150 on upbeat New Zealand’s economic outlook


  • NZD/USD catches a fresh bid after NZIER ups New Zealand’s growth outlook.
  • The kiwi ignores the US dollar’s strength, as it bounces off key daily support.
  • All eyes remain on the FOMC decision for the next direction in the kiwi.

NZD/USD is testing the daily highs near the 0.7150 barrier, having caught a fresh bid wave after the New Zealand Institute of Economic Research (NZIER) revised up the South Pacific Island nation’s near-term economic growth outlook.

 The NZIER said in its latest report, “the near-term growth outlook has been revised up ... annual average growth in GDP is expected to reach 5 percent in March 2022.”

New Zealand’s renewed economic optimism outweighs the broad-based US dollar strength, as markets look for fresh cues on the Fed’s monetary policy path, with the FOMC meeting scheduled this week.

The NZD bulls also ignored the dismal Business NZ PSI (May) and G7’s take on China, as the kiwi found some solid support at 0.7115.

NZD/USD technical outlook

On the daily chart, it can be seen that the price has bounced off the abovementioned critical support level, which is depicted by the horizontal (orange) trendline connecting previous lows.                                

This comes as the Relative Strength Index (RSI) sees an upturn, looking to recapture the 50.00 level.

NZD/USD daily chart

The rebound could face stiff resistance around 0.7185, the confluence of the 50 and 100-Daily Moving Averages (DMA).

Meanwhile, a daily closing below 0.7115 could trigger a steep drop towards the 200-DMA at 0.7035.

NZD/USD additional levels to watch

NZD/USD

Overview
Today last price 0.7141
Today Daily Change 0.0013
Today Daily Change % 0.18
Today daily open 0.7127
 
Trends
Daily SMA20 0.7217
Daily SMA50 0.7187
Daily SMA100 0.7183
Daily SMA200 0.703
 
Levels
Previous Daily High 0.7211
Previous Daily Low 0.7115
Previous Weekly High 0.7244
Previous Weekly Low 0.7115
Previous Monthly High 0.7317
Previous Monthly Low 0.7115
Daily Fibonacci 38.2% 0.7152
Daily Fibonacci 61.8% 0.7174
Daily Pivot Point S1 0.7091
Daily Pivot Point S2 0.7055
Daily Pivot Point S3 0.6995
Daily Pivot Point R1 0.7187
Daily Pivot Point R2 0.7247
Daily Pivot Point R3 0.7283

 

 

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