NZD/USD chart - Trading View
- NZD/USD is trading 0.35% higher on the day at 0.6867 at 0630 GMT. Broad-based US dollar weakness supporting upside.
- The pair finds stiff resistance at 0.6870 (trendline). Break above could see further upside.
- Kiwi likely to remain under pressure after NZIER lowered both growth and interest rate forecast ahead of domestic GDP release, due this Wednesday.
- NZIER expects the annual GDP to peak at 2.9 percent from the year to March 2021 before moderating to 2.5 percent in the following year.
- Further, interest rate forecasts have been revised down throughout the projection period.
- Technical studies for the pair are still holding a slightly bullish bias. Break above 0.6870 could see gains upto 0.6915.
- GDP data is expected to show the growth rate ticked higher to 0.6 percent q/q r in Q4 from 0.3 percent in Q3.
- Focus also on FOMC meeting for further impetus. A dovish Fed could provide further wings to the pair.
Support levels - 0.6850 (5-DMA), 0.6827 (21-EMA), 0.6809 (55-EMA)
Resistance levels - 0.6870 (trendline), 0.69, 0.6915 (trendline)
Recommendation: Watch out for break above 0.6870 to go long.
For details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
