NZD/USD Extends Gains Above 0.7000
NZD/USD
is rising sharply today, strengthened particularly after breaking above
0.6970 (March highs) and also on top of the 0.7000 handle. The pair
peaked at 0.7053 and then pulled back, despite an increase in dairy
prices at the latest auction.
The auction ended with a gain in
the GDT (GlobalDairyTrade) Price Index up 3.8%. The Kiwi remained steady
in the market after the report, consolidating gains versus the US
dollar.
NZD/USD holding above 0.7000
The
pair peaked at 0.7053, the highest since June 11 and then pulled back
but remained on top of 0.7000. Currently, it trades at 0.7030/35, up
1.20% for the day, rising for the third day in a row.
From a
technical perspective, with NZD/USD consolidating above 0.6940 and
0.7000, the door for more gains appears to be open. The next medium-term
resistance is seen around 0.7180 (February and March 2015 lows).
On the opposite direction, a retreat that pushes the pair significantly below 0.6940 could remove Kiwi’s strength.
