- NZD/USD: markets were more positive on Wednesday, Kiwi extends uptrend.
- NZD/USD: higher levels on the cards, eyes on 0.7430?
The markets were more positive on Wednesday and less concerned about an imminent missile strike in Syria taking place after Trump tweeted he never said when an attack on Syria would take place -"It could be very soon or not so soon at all," he said.
The Kiwi rose with equities with the S&P 500 reversing Wednesday’s losses and the bird recovered into the 0.7380's before further signs that global growth is at a peak capped commodity currencies overnight. The Kiwi dropped back and traded heavy for the rest of the day and traded just below the 21-hr SMA at 0.7373.
Where next?
"Moves higher from here cannot be ruled out, but we are still of the mind that these should be faded. The higher volatility environment (together with interest rate differentials) should put the NZD more on the defensive," analysts at ANZ explained. For the day head, the only domestic data out today is the BNZ-Business NZ PMI for March and instead, markets will turn to Chinese trade.
NZD/USD levels
NZD/USD remains above the hourly trend line support while the daily picture remains bullish with the recent extension of the early April rally from 0.7260. Technicals remain bullish with higher RSI and momentum and the 21-day MA at 0.7260 should be a hard support in the interim. While above there, the 0.7430's remain compelling. There is wide support at 0.7180 and resistance at 0.7440 while the break of the descending daily resistance line has been a positive for bulls as the price extends higher.
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