NZD/USD taking a breather below 2016 highs of 0.6966

NZD/USD has seen some wild price action over the last twenty-six hours on the back of the Doha news, but has, in the main, stuck to its upward trajectory and scored fresh highs for the month and fell six pips short of matching 2016 highs of 0.6966 made on 31st March. 

NZD/USD went from 0.6894 and experienced few set-backs in its advance intra-session overnight. The calendar was lacking and most activity was centred around pure sentiment and adjusting to the volatile circumstances. We had Federal Reserve speakers who failed to deliver anything new to the table and leaves us looking forward to the GTS price index while we await the RBNZ's decision later this month. In that respect, yesterday's Q1 CPI was +0.2%/qtr and +0.4%/yr, coming in a tad higher than expectations, but right on RBNZ estimates.

NZD/USD levels

Analysts at UOB expect the price to remain Neutral over the next three weeks and within a range trading between 0.6760 and 0.6970. "The outlook for NZD is mixed as this pair continues to trade in an erratic manner. There is no change to our view wherein we expect further choppy range trading within a broad 0.6760/0.6970 range." However, should the upside play out beyond March highs and onto R2 at 0.6985, R3 is located at 0.7003 aheda of 0.7200 and early 2015 lows.