FxWirePro: NZD/USD holds marginal gains above 0.71 handle, upbeat New Zealand HYEFU forecasts support

NZD/USD chart - Trading View 

NZD/USD was trading 0.21% higher on the day at 0.7100 at around 05:20, outlook bullish.

The pair was extending gains for the 7th straight session, pair tests 78.6% Fib at 0.7111. 

Price action has slipped lower from session highs at 0.7120 as markets turn cautious ahead of US stimulus announcement, Fed and NZ GDP.

New Zealand Treasury forecasts higher GDP growth in 2020/21. NZ Treasury expects average GDP growth for 2020/21 around 1.5% versus -0.5% previous forecast. 

The third quarter (Q3) estimation is 10.5% against +12.2% predicted in Q2. Further, the unemployment rate is anticipated to peak at 6.9% in Q4 2020, which was previously signaled at 7.8%.

Kiwi pays a little heed to the New Zealand (NZ) Treasury’s Half-Year Economic and Fiscal Update (HYEFU).

Technical bias for the pair is bullish. Scope for further upside on break above 78.6% Fib. Next bull target lies at 200M MA at 0.7180.