NZD/USD: support at 0.7300 if risk improves further

Ross J Burland FXStreet

Currently, NZD/USD is trading at 0.7308, down -0.05% on the day, having posted a daily high at 0.7314 and low at 0.7304.

NZD/USD rose from 0.7290 to 0.7335 in last week's US session on the back of improved risk sentiment on the news that the controversial Trump adviser Bannon had resigned. This lead to US bond yields and USD/JPY rising while equities trimmed their losses.

There is very little left from the domestic calendar for the bird and eyes will be on the US and the possibly heightened concerns over the N.Korean/USA risk. Otherwise, the NZ July trade balance will be in focus.

North Korea sparking concerns for investors again, yen to strengthen further?

Meanwhile, for the day ahead, analysts at Westpac suggested that support is around 0.7300 if risk appetite improves further.

NZD/USD 1-3 month:

Further out, the analysts explained again that if the RBNZ remains firmly on hold, as we expect, and the US dollar rises on tighter Fed policy, then NZD/USD could fall as far as 0.70 by year-end, a view held since 8th August.

NZD/USD levels

To the upside, the 0.7335 highs and 0.7370 (9th Aug high) are the immediate resistance areas. To the downside below 0.7300, 0.7280, 0.7205, the 06 June 22/21 lows and 0.7186 June 15 low along with the 50% of the move up from the 2017 low (May low) at 0.7187 are key areas of support ahead of 0.7150 June 5 high; 0.7127 June 6 low and 0.7100.

Author

Ross J Burland

FXStreet

Ross J Burland, born in England, UK, is a sportsman at heart. He played Rugby and Judo for his county, Kent and the South East of England Rugby team.

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