NZD/USD: attacking the 0.71 handle

Currently, NZD/USD is trading at 0.7094, down -0.03% on the day, having posted a daily high at 0.7103 and low at 0.7090.

RBNZ Financial Stability Report: global policy uncertainty remains elevated and debt burdens are high in a number of countries

NZD/USD was offered into the latest confirmation that NZ's financial system is on track, although there are still risks that were highlighted in the RBNZ Financial Stability Report, albeit sighting that the risks have reduced in the past six months. Nevertheless, the bird caught a bid again within the consolidation phase of the overnight rally from the id point fo the 0.70 handle. Analysts at Westpac explained that the bird rRetains positive momentum, with the potential to move into a higher 0.7100-0.7200 trading ranged during the days ahead.

NZD/USD 1-3 month:  

Their longer-term outlook suggests that the Fed’s tightening cycle plus US fiscal expansion should eventually reassert upside pressure on US interest rates and the US dollar, pushing NZD/USD below 0.6800 by year end. "US factors should outweigh local factors which are mostly supportive."

NZD/USD levels

NZD/USD's 20 4hr sma at 0.7060 today has been supporting the ascending channel. 0.7080 is the near-term support that was previous resistance. Next resistance is before 0.7110 the highs ahead of and 0.7148. To the downside and below the 20 4hr sma lies 0.7000, 0.6980 and the 50 daily sma at 0.6952 are the key supports.