NZD/USD surges to 6-week tops on latest NZ election poll
The NZD/USD pair quickly reversed a dip to 0.73 neighborhood and touched a 6-week high level of 0.7375 in the past hour.
The latest leg of sharp spike of over 70-pips could be solely attributed to the latest opinion poll results, showing that the ruling National Party has regained lead for the upcoming national elections.
• Election Poll: NZ ruling National Party regains lead
Against the backdrop of today's better-than-expected NZ trade balance data, the latest poll results helped the pair to decisively break through an important supply zone, taking along some stops near the 0.7340 region.
This coupled with a weaker tone surrounding the US Dollar, led by retracing US Treasury bond yields, remained supportive of the strong bid tone surrounding higher-yielding currencies - like the Kiwi.
It, however, remains to be seen if the up-move is backed by any genuine buying or turn be a stop run as investors start repositioning ahead of the outcome of a two-day FOMC meeting, due to be announce later during the NY trading session.
Technical levels to watch
The ongoing momentum seems strong enough to lift the pair closer to the 0.7400 handle, above which the up-move could get extended towards 0.7435 horizontal resistance.
On the flip side, any retracement might now find immediate support near the 0.7340 area, which if broken would turn the pair vulnerable to drift back towards the 0.7300 handle.
Author
Haresh Menghani
FXStreet
Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.
