The NZD/USD Leads the Charge Higher
Rowan Crosby • 1 min read
The NZD/USD was the strongest of the majors yesterday and price is looking like it has more upside left in it.
The risk-on tone was evident across the board yesterday, as stocks and the other key risk asset all pushed higher as well.
US Durable goods orders jumped higher and this was another good sign for the economy, however, the NZD/USD was already pushing up well before that and was higher yesterday in Asian trade.
Much is also hinged on how the USD performers in the coming 24 hours with Jerome Powell expected to update the Fed’s stance on its inflation target. What might happen is that inflation could be allowed to run higher than previously, while rates would stay low. This is bearish for the USD, but how the Greenback responds is another question.
There was plenty of support below in the Kiwi and as we can see price really bounced right off that 0.6500 level. Above that point, we can also see 0.6525 has a consistent buyer headed back for a number of weeks.
After breaking through 0.6600, that level now also becomes key support and will be the main area to watch on a pullback. If that price level holds, then that is very bullish in my eyes.
0.6640 is the current level and also resistance from the most recent high, but above that point, the clear target is the highs of 0.6700.