NZD/USD rallies on GDP and bullish sentiment

NZD/USD retains its bullish advance, rallying on positive vibes from New Zealand's economy and Finance Minister earlier in the shift.

NZD/USD has spiked on the back of the Q1 GDP data that arrived 0.70% vs 0.50% exp vs prev 0.90% for Q/Q while Y/Y arrived as 2.80% vs exp 2.60% and prev 2.30%. This data coupled with the Fed on hold and dovish has added fuel to the bulls fire, penetrating the 100 sma at 0.7044 in the process from the 20 4hr at 0.7034. 

Overnight the kiwi got a boost on the back of the GDT price index unchanged vs potential headwinds in a commodity glut climate with the prior 3.4% ad average prices at $2339. 

In respect to the Fed, there was not much of a reaction to the Fed staying on hold, despite appearing more dovish and less committed to raising rates in the near future with the majority of the market preempting such a tone due to the recent downturn in the economy and economic data. 

NZD/USD levels

NZD/USD is up to test the bears commitments at 0.7080, breaking through the previous at 0.7050 (pre double top) in a continuation of the rally that broke up through the 100 and 20 dma's and further aided by the bullish cross over betwene that 20 dma and the 50 dma at 0.6870/83. 0.7200 is key target extending the channel's resistance from late Aug business 2015 down at 0.6220. Pull backs below the double top at 0.7050 and 0.6980 there after would alleviate the upside pressures denting the case for the upside to 0.7200.