NZD/USD: recovery towards 0.7250 ahead of key data
NZD/USD is currently making a recovery towards the mid point of the 0.72 handle ahead of key NZ business confidence (ANZ) today.
Business confidence has been buoyant in New Zealnd, consistent with strong activity in the economy, as analysts at Westpac explained, "But we will be looking for any movement in the inflation-related components which have been depressed."
Meanwhile the greenback has been string overnight and the commodities sector took a hit, weakening the bird that slid from the 0.7240's to test the 0.7200 level with a low of 0.7203. Analysts at Westpac explained that any break below this level should be worth a cent and offered a NZD/USD 1-3 month outlook as follows, "The RBNZ's easing cycle combined with the Fed tightening in December should push the NZD lower towards 0.70 by year end, although recent BOE and BOJ easing have made the NZ Deven more attractive to global investment flows such that a rise to the 0.75 area is possible first. (1 Aug)."
NZD/USD levels
With spot trading at 0.7298, we can see next resistance ahead at 0.7302 (Daily Classic R3), 0.7306 (Yesterday's High), 0.7307 (Annual High), 0.7307 (YTD High) and 0.7324 (Daily High). Support below can be found at 0.7281 (Monthly High), 0.7281 (Weekly High), 0.7281 (Daily Open), 0.7276 (Daily Low) and 0.7265 (Daily Classic R2).