- Kiwi among the best of the week amid aggressive RBNZ.
- NZD / USD remains capped by 0.7300, supported above the 20-day moving average.
The NZD / USD It bottomed at 0.7212 on Friday amid a rally in the US dollar, then rallied, climbing back to the 0.7255 area. It hovers around 0.7250, clinging to weekly gains supported by the meeting of the Reserve Bank of New Zealand (RBNZ).
On a volatile Friday, the US dollar fell back during the US session and cut losses, favoring the rebound in NZD / USD. The DXY reached weekly highs near 90.50 and tends to fall towards 90.00 following the US economic reports.
The kiwi finished mostly higher across the board after the RBNZ offered a stiff surprise in its statement, suggesting that they plan to raise interest rates starting in the second half of 2022. The key event next week will be the employment report. from the US on Friday.
ING analysts think that the RBNZ’s next step will be to signal the gradual reduction in QE and that the new aggressive bias is intended to provide widespread support for the New Zealand dollar. “A general risk appetite environment may allow NZD / USD to move above 0.7300 next week.”
During the week, the NZD / USD failed again to stay above the critical 0.7300 barrier and pulled back. The bias points to the upside while it is above 0.7120.
Technical levels
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