Currently, NZD/USD is trading at 0.7186, up 0.28% on the day through the key 50 sma on the 1hr sticks, having posted a daily high at 0.7197 and low at 0.7146.
NZD/USD has rallied on a broad based sell-off in the greenback and is exceeding the highs seen yesterday, en route for the 0.72 handle. The Dollar Index has been a driving factor so far this week supported so far by Yellen, but the 102 handle was a touch too far and selling has ensued driving pairs lower across the board. Eyes remain on the index:
"Yellen's reiteration of the commitment to continue to gradually lift rates helped extend streak to eleven sessions. This surpassed the streak seen around the election (November 7-November 18). With today's gains, it may draw closer to what appears to be the longest streak, 14 sessions between April 30 and May 17 2012. To put it slightly differently, the Dollar Index has not had a losing session this month." In respect of domestic data, we have Feb Consumer Confidence, Jan Non-resident bond holdings Fri: Jan Manufacturing PMI, Q4 Retail Sales ex Inflation.
NZD/USD 1-3 month:
Looking ahead, analysts at Westpac explained 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."
- R3 0.7262
- R2 0.7230
- R1 0.7198
- PP 0.7166
- S1 0.7134
- S2 0.7102
- S3 0.7070