NZD / USD holds over 0.7000, trades high near 0.7025
Rising expectations for next month’s RBNZ rate hike are encouraging a move higher than the kiwi – NZD / USD has risen 0.6% today, currently to 0.7025.
The couple wants to try again and take a break for more than 0.7000, but after keeping the level above the level at the beginning of the week, there is room for intimidation.
All major increases are currently difficult to understand, as resistance opportunities were created in the 0.7043-44 range this week. To this is added trend line resistance (white line) @ 0.7045.
As such, it is necessary for buyers to go above and beyond to make the next leg longer. This means that before playing the 0.77100 handle, there is still resistance in the 200-day moving average (blue line) @ 0.7071.
The latter, in particular, has limited profits at the end of June, so this is an important short-term technical level that buyers need to reach in order to reach the top.
As it stands, the outlook for the kiwi is rather bullish, but I would prefer a more straightforward play, such as an anti-Aussie game based on political divergence (announced since the RBA policy meeting earlier this month).
With regard to the dollar, the redemption is still largely resilient, with risk-taking that can be said to be prudent in prudent territory, as equities recede from all-time highs and the bond market has been quite convincing since then.
U.S. retail data is key to look at later in the day to see if you can find a catalyst for a couple’s movement or retreat before the weekend.