NZD/USD Extends RBNZ-Led Rally, Hits Fresh 1-Year High Near 0.7150

NZD/USD Extends RBNZ-Led Rally, Hits Fresh 1-Year High Near 0.7150

The NZD/USD pair found fresh bids near 0.7120 region and regained poise, now trading within a striking distance of yearly highs, as markets absorb the latest RBNZ OCR decision as well as Wheeler’s comments.

NZD/USD eyes on 0.7200

Currently, the NZD/USD pair jumps +0.65% to fresh yearly highs at 0.7147, on its way to 0.7200. The Kiwi caught a fresh bid-wave last minutes and now looks to regain 0.7150 barrier as renewed buying interest seen around the commodities, particularly oil and gold, further boosted the demand for the resource-linked NZD.

The bird held the 0.7100 support and keeps pushing higher as markets shrugged-off weaker Chinese CPI data, while upbeat remarks by RBNZ Wheeler continued to underpin sentiment.

Earlier on the day, the RBNZ  kept the Official Cash Rate (OCR) steady at 2.25%, while bank's more upbeat assessment of the global economy and domestic inflation gave extra wings to the bird, send it higher to fresh one-year high beyond 0.71 handle.

Next of note for the major remains the US unemployment claims data ahead of the consumer sentiment figures due out on Friday, while Sunday’s China data dump will also have significant impact on the Kiwi in the Fed week going forward.

NZD/USD Levels to consider

To the upside, the next resistance is located at 0.7192/0.7200 (daily S1/ round number), above which it could extend gains to 0.7232 (June 2015 highs). To the downside immediate support might be located at 0.7100 (key support) and from there to at 0.7069 (daily pivot).