NZD/USD hits fresh 10-month tops on NZ’s Joyce comments

The NZD/USD pair finally broke its upside consolidation phase and went on to print fresh ten-month tops near 0.7430 region, in response to upbeat remarks from New Zealand’s Finance Minister Joyce.

NZD/USD: Will it take-out 0.7450?

Despite widespread risk-aversion, the Kiwi stands resilient and witnessed a fresh upwards spike in a knee-jerk reaction to the comments by NZ FinMin Joyce, who cited that NZD at current levels reflect a strong economy.

Additionally, the latest NZ credit card spending data for June showed a rise in spending on an annualized basis, which also offered support to the latest move higher.

However, it remains to be seen if the spot manages to extend the upside, as the US dollar remains on track on a steady recovery from the lowest levels since June 2016 reached against its main competitors, after fresh US political drama hit the buck sharply overnight.

Also, heavy losses seen in the Aussie over the last on RBA Debelle’s jawboning could also limit further gains in its OZ neighbor. Looking ahead, in absence of fresh economic drivers, the spot will continue to take cues from the broader market sentiment and USD dynamics.

NZD/USD Levels to consider                                                                              

NZD/USD holds well above 0.7400, with a break above 0.7429 (multi-month highs) could open doors for a test of 0.7450 (psychological levels). To the downside lies 0.7383 (daily pivot) still guarding 0.7369 (5-DMA) and a break back below 0.7315 (20-DMA) are key near-term downside areas.