Updated
Updated · continuumeconomics.com · Aug 18
NZD/USD Extends Rebound From 0.5821 Low, Eyes 0.5900 Break
Updated
Updated · continuumeconomics.com · Aug 18

NZD/USD Extends Rebound From 0.5821 Low, Eyes 0.5900 Break

3 articles · Updated · continuumeconomics.com · Aug 18

Summary

  • NZD/USD pushed higher from last week’s 0.5821 low, but the pair still lacked follow-through above the 0.5900 resistance level in early trade.
  • A clear break of 0.5900 would reinforce the broader rebound from June’s 0.5625 low and open the way toward 0.5930-0.5950, with May’s 0.5995 high the next major target.
  • Support is seen at 0.5850 and down to 0.5821, a zone the chart update said should now underpin the bullish move from the June low.
  • The kiwi had already been holding near 0.590 in the previous session, supported by a softer US dollar and expectations of a 25-basis-point RBNZ rate hike.

Insights

Could a sudden breakthrough in Middle East peace talks trigger an unexpected, massive rally for the risk-sensitive kiwi?
Will the RBNZ's aggressive rate hike gamble backfire as cracks in New Zealand's domestic economy begin to widen?
With mixed US economic signals confusing investors, is the dollar's recent weakness just the beginning of a larger global shift?