FxWirePro: NZD/USD spikes over 0.60%, hits 3-week highs above 21-EMA, outlook bullish
NZD/USD chart - Trading View
NZD/USD was trading 0.60% higher on the day at 0.7088 at around 05:45 GMT, outlook bullish.
Price action has broken above 21-EMA which was capping upside from many sessions.
The major largely unfazed after the Reserve Bank of New Zealand’s (RBNZ) interest rate decision, but remains buoyed on broad based U.S. dollar weakness.
The RBNZ as widely expected, maintained the status quo and left the key rates unchanged at 0.25%.
The Large-Scale Asset Purchase (LSAP) program of up to $100billion and the Funding for Lending Programme (FLP) operation were also kept unchanged.
US dollar index (DXY) weakness remains the primary driver of today's movements. DXY refreshes multi-week lows near 91.70.
NZD/USD is trading shy of 0.71 handle and 55-EMA resistance (0.7105). Decisive break above will buoy bullish bias.
Next hurdle for bulls lies at 20W MA at 0.7142. On the flipside, retrace below 21-EMA will negate any upside bias.