- The NZD/USD gains three-quarters of a percent on Friday to etch in a seventh straight gain.
- The Kiwi is up 2% against the US Dollar heading into the tail end of Friday's trading session.
- Thin Kiwi data next week gives way to another bout of US NFP data next Friday.
The NZD/USD is continuing its climb as the Kiwi (NZD) stands out as the single best-performing currency of the major currencies bloc, up 2% against the US Dollar (USD) for the trading week.
An improving economic outlook coupled with a hawkish Reserve Bank of New Zealand (RBNZ) is bolstering the NZD across the board. The Kiwi is climbing into the 0.6200 handle against the Greenback for the second time in three days.
The RBNZ held interest rates at 5.5% this week, but a hawkish stance from New Zealand’s central bank is propping up the Kiwi, with RBNZ officials actively weighing additional rate hikes with inflation continuing to fall outside of the RBNZ’s target 1-3% band for so long.
Consumer sentiment and business outlook surveys continue to rise, with the New Zealand ANZ Roy Morgan Consumer Confidence survey index rising to a yearly high of 91.9 early Friday, adding further momentum to the NZD/USD heading into the week’s end.
Next week has a fairly thin showing for the Kiwi on the economic data calendar, but eyes will be turning towards next Friday’s US Non-Farm Payrolls release, where the US is expected to see a marginal gain in the number of new job hires from 150K to 170K in November.
NZD/USD Technical Outlook
The NZD/USD is set to close in the green for twelve of the last fourteen consecutive trading days, and as long as the pair holds near the 0.6200 handle into the Friday closing bell that will etch in seven straight days of gains.
The Kiwi-Dollar pairing has climbed 7.5% from October’s bottom bids of 0.5772, and a continuation of recent bullish momentum will see a new long-term trend form up and take a challenge run at July’s swing high into 0.6400.
The NZD/USD easily slipped through the 200-day Simple Moving Average (SMA) last week as the Kiwi’s near-term trend rotates firmly bullish, and bulls will be fresh and ready for a leg higher as long as a retracement doesn’t take the pair back below the 200-day SMA at the 0.6100 handle.
NZD/USD Daily Chart
NZD/USD Technical Levels
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
AUD/USD: Positive bias expected to continue
AUD/USD came under pressure after hitting a new peak north of the key 0.6700 the figure in a context of renewed strength in the Greenback and mixed results from the Australian labour market.
EUR/USD appears bid above the 200-day SMA
EUR/USD faced some renewed offered stance on the back of a tepid bounce in the Dollar. Despite the corrective move, the pair seems well poised to extend its bullish trend in the short-term horizon.
Gold aims to retest the $2,400 area
Gold advanced toward $2,400 on Wednesday as US Treasury bond yields pushed lower following the April inflation data. The recovery in US yields combined with the US Dollar's resilience after Jobless Claims data, however, causes XAU/USD to retreat toward $2,370 on Thursday.
Bitcoin price holds above $65.5K threshold as world’s largest futures exchange plans to launch BTC trading
Bitcoin’s (BTC) price rally on Wednesday was shocking, steered by the April Consumer Price Index (CPI) data release in the US. Speculation and market sentiment inspired the surge as traders and investors interpreted the news of softened inflation as a signal that central banks may maintain loose monetary policy.
April CPI: Worst good news ever
The monthly rise in prices based on the Consumer Price Index (CPI) came in slightly lower than projected, sending a wave of euphoria across the financial landscape. The consensus is cooling inflation puts Federal Reserve interest rate cuts back on the table.