NZD/USD: bid through 1hr 200 EMA, testing key resistance at 0.7020

Currently, NZD/USD is trading at 0.7015, up 0.02% on the day, having posted a daily high at 0.7019 and low at 0.7013.

NZD/USD is slightly bid on the back of recent data.The NZIER Business Confidence released by the New Zealand Institute of Economic Research shows the business outlook in New Zealand and came in at 17% vs. 28% prior.

Fed's Harker: Fed should not jump to conclusions on fiscal stimulus

Meanwhile, analysts at Westpac noted that NZD/USD is still consolidating between 0.6975 and 0.7090, the downside more vulnerable given the US dollar’s continuing recovery.

NZD/USD 1-3 month:  

"Potential for higher to the 0.7150-0.7300 area during the month ahead, as USD longs are pared. Further out, the Fed’s tightening cycle plus US fiscal expansion should maintain upside pressure on US interest rates and the US dollar, pushing NZD/USD down towards 0.6900. Weaker dairy prices plus the RBNZ’s emphatic reminders it is on hold for a long time should also weigh. (21 Mar)," - Westpac

AUD/NZD: target 1.08, flipping negative - Westpac

NZD/USD levels

 We have the 0.7022 resistance through the 200 hourly EMA here at 0.7011. This area is guarding 0.7085 and the 200-d ema. There is a double bottom at 0.7130 as the mid-Feb lows. On the downside, a break of 0.7000 and the 0.69 handle 0.6885 mark as being the recent lows guarding 0.6675 as the 29th May 2016 on a break of the 0.67 handle.