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NZD/USD: Bulls on a rampage, rises to 0.6550

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Nov 19, 2015.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
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    FXStreet (Mumbai) - The NZD bulls tighten their grip in Asia, sending NZD/USD through the roof beyond 0.65 barrier to a new three-day high near 0.6550 levels.

    NZD/USD takes out 1h 200-SMA

    Currently, the NZD/USD pair trades nearly 1% higher at 0.6532, having posted fresh three-day highs at 0.6546 last minutes. The bid tone around the NZD/USD pair keeps growing bigger as the bird enjoys multiple factors, pushing it through the sky.

    The USD correction after the FOMC-minutes just got bigger this session, with markets using the non-event FOMC-minutes to unwind their long USD positions and lock-in gains. The renewed US dollar sell-off across the board pushed the Kiwi further beyond 0.65 handle.

    Moreover, impressive NZ PPI data also boosted the sentiment around the Kiwi. New Zealand's Producer Price Index (PPI), rose 1.3% in Q3, following a decline of 0.2% in the April-June period.

    Further, the solid recovery seen in the precious metals and oil prices also supports the upbeat momentum in the NZD/USD pair. Gold trades 0.75% higher at $ 1077, while the US oil gains nearly 1% to $ 42.30.

    In the day ahead, markets will continue to track the broader market sentiment and the USD moves for further momentum.

    NZD/USD Levels to consider

    To the upside, the next resistance is located at 0.6585 (Nov 16 High), above which it could extend gains to 0.6600 (round number) levels. To the downside immediate support might be located at 0.6492 (Nov 16 Low) below that 0.6450 (Nov 17 Low).
    For more information, read our latest forex news.

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