Currently, NZD/USD is trading at 0.7149, down -0.19% on the day, having posted a daily high at 0.7178 and low at 0.7146.
NZD/USD has been continued south in a second correction of the recent rally from 0.7110 area earlier this week, even as the Aussie rallies to test major resistance on the 077 handle again after on Q3 CPI released earlier. Australia's Q3 CPI beats expectations, RBA trimmed mean CPI unchanged
There is a growing consensus that the RBNZ will need to cut rates before the year is out while the market senses that the RBA can now stay on hold for the time being after today's CPI. Markets would be therefore be rather reluctant to buy the NZD with conviction within two weeks of a rate cut, whereas with the Fed, they are tipped to act with a year's long awaited additional 25bp hike to that of Dec 2015. However, the bird could be supported otherwise should commodity prices remain robust and China continues to stabilize while the DXY is meeting lofty levels through the recent nine-month highs of the 99 handle.
NZD/USD levels
Current price is 0.7150, with resistance ahead at 0.7156 (Hourly 20 EMA), 0.7160 (Hourly 200 SMA), 0.7164 (Daily Open), 0.7169 (Weekly Classic PP) and 0.7173 (Hourly 100 SMA).Next support to the downside can be found at 0.7149 (Daily Classic PP), 0.7146 (Daily Low), 0.7138 (Weekly Low), 0.7123 (Daily Classic S1) and 0.7109 (Yesterday's Low).
"NZD/USD 1-3 month: Targets 0.6950 or lower as long as the RBNZ cuts to 1.75% in November and the Fed tightens to 0.625% in December, as we expect. (13 Oct)," - Westpac
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