NZD/USD Price Analysis: Yields a big technical breakout above 0.7300 on RBNZ’s hawkish surprise

NZD/USD confirms a symmetrical triangle breakout on the 1D chart.
RBNZ points to a September 2022 rate hike, Kiwi takes a flight.
Further upside likely in place, as RSI holds firmer above 50.00.

Dhwani Mehta FXStreet

NZD/USD is extending its rally above 0.7300 after the Reserve Bank of New Zealand (RBNZ) pointed to a potential rate hike in September 2022 amid notable improvement in the economic situation.

The RBNZ’s hawkish surprise offered the much-needed boost to the kiwi bulls, as the price witnessed a big technical breakout on the daily sticks.

The kiwi confirmed a symmetrical triangle breakout on the said time frame after it raced past the falling trendline resistance at 0.7238 on a sustained basis.

At the press time, the spot is up 1.05% on the day, trading at the highest levels in three-month near 0.7310.

With the Relative Strength Index (RSI) holding firmly above the midline while eyeing the overbought territory, a test of the 0.7350 psychological levels remains on the cards.

NZD/USD daily chart

However, any pullback moves would see a test of the triangle resistance now support, below which the 21-daily moving average (DMA) at 0.7219 could emerge as a strong cap.

All in all, the path of least resistance appears to the upside.

NZD/USD additional levels to watch

NZD/USD

Overview
Today last price	0.7304
Today Daily Change	0.0072
Today Daily Change %	1.00
Today daily open	0.7228

Trends
Daily SMA20	0.7215
Daily SMA50	0.7142
Daily SMA100	0.7179
Daily SMA200	0.6993

Levels
Previous Daily High	0.7251
Previous Daily Low	0.7204
Previous Weekly High	0.7272
Previous Weekly Low	0.7151
Previous Monthly High	0.7287
Previous Monthly Low	0.6945
Daily Fibonacci 38.2%	0.7233
Daily Fibonacci 61.8%	0.7222
Daily Pivot Point S1	0.7204
Daily Pivot Point S2	0.7181
Daily Pivot Point S3	0.7157
Daily Pivot Point R1	0.7251
Daily Pivot Point R2	0.7275
Daily Pivot Point R3	0.7298

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

AUD/USD hangs close to monthly lows, still defends 0.7100 ahead of Fed decision

AUD/USD retains its negative bias for the third straight day, defending 0.7100 while trading close to a monthly low in Wednesday's Asian session on Wednesday. The US Dollar stands firm near a two-week high as the anticipated Fed rate hike and oil-driven inflation fears continue to push US bond yields to a multi-year high. Furthermore, escalating Middle East tensions benefit the safe-haven buck and weigh on the risk-sensitive Aussie.

USD/JPY holds firm above 155.00, awaits Fed policy announcements

USD/JPY climbs to a fresh one-week high above 155.00 in the Asian session on Wednesday amid a bullish US Dollar. Oil-driven inflation fears, along with the anticipated Fed rate hike, continue to support surging US bond yields. Moreover, rising US-Iran tensions underpin the USD's reserve currency status. The pair, however, remains below the mid-155.00s as bulls seem hesitant ahead of the Fed decision later today and the BoJ meeting, starting on Thursday.

Gold traders seem noncommittal below $4,350; eyes Fed rate decision

Gold clings to modest intraday gains through the first half of the European session, albeit it lacks follow-through buying and remains below $4,350. The US Dollar eases from a two-week high amid some profit-taking, offering support to the commodity. Traders, however, seem hesitant to place aggressive directional bets and opt to wait on the sidelines heading into the key central bank event risk.

Cardano's bearish breakout warns of a 15% downside risk

Cardano (ADA) hovers around $0.1900 at press time on Wednesday after a 6% decline the previous day, breaking below a crucial support level. Declining on-chain activity across the Cardano ecosystem, with reduced transaction count and Real Economic Value (REV), suggests waning user demand.

Fed decision in focus

Starting with the most important, the Fed decision. Heading into the event, data showed a rather punchy US August jobs report, which, you will likely recall, triggered a hawkish Fed rate repricing in rates markets. However, the recent US August CPI print mattered more.

How Japan became the World's Banker and why that era may be ending

Japan's ultra-low interest rates helped finance trillions of dollars in global investments for more than a decade, making the Japanese Yen one of the world’s cheapest sources of funding. With the Bank of Japan expected to tighten policy again this week, that advantage may be entering a new phase. While most major economies raised interest rates, Japan remained the world's outlier.