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26 Feb 2015
NZD/USD hits new highs for the month
FXStreet (Bali) - NZD/USD is breaking through an important resistance level, currently going bid above the 0.7560/70 level, hitting a new 5-week high.
The rise comes after NZ trade balance came better-than-expected, with a slide in imports the main contributor, while the slight disappointment of not seeing Fonterra upgrade its forecast for milk - maintained at NZ $4.70 - was a key piece of information dismissed by the market, reinforcing the notion that ST sentiment remains bullish, as reflected by the current breakout seen. The focus will not turn to Australia's Q4 CAPEX, with the NZD expected to play catch up with the AUD, ahead of RBNZ FX update.
Technically, on the upside, the next key resistance is found at 0.7590 - 50-day MA - ahead of 0.76 round number and 0.7630 - double bottom Dec 2014. On the downside, a rising 20-day MA around 0.75 should see the line being defended for buyers to keep the short term control in the pair.
The rise comes after NZ trade balance came better-than-expected, with a slide in imports the main contributor, while the slight disappointment of not seeing Fonterra upgrade its forecast for milk - maintained at NZ $4.70 - was a key piece of information dismissed by the market, reinforcing the notion that ST sentiment remains bullish, as reflected by the current breakout seen. The focus will not turn to Australia's Q4 CAPEX, with the NZD expected to play catch up with the AUD, ahead of RBNZ FX update.
Technically, on the upside, the next key resistance is found at 0.7590 - 50-day MA - ahead of 0.76 round number and 0.7630 - double bottom Dec 2014. On the downside, a rising 20-day MA around 0.75 should see the line being defended for buyers to keep the short term control in the pair.