- NZD / USD broke out of the top of its recent range on Monday amid broad weakness and risk of USD triggering.
- Having broken out of a key downtrend, the pair is considering a test of the late January high at 0.7250.
The NZD / USD It broke out of the top of its recent range on Monday amid a broad weakening of the US dollar and a risky vibe in the market that benefited risk-sensitive currencies like the NZD and AUD; The pair reached daily highs at 0.7230, its highest levels since January 27. Currently, the pair is consolidating at 0.7220, right around the previous February highs, and is up about 0.3% or 25 pips on the day.
Facing kiwi, New Zealand’s pro-RBNZ inflation measure, RBNZ inflation expectations for the first quarter, are approaching 02:00 GMT, so kiwi could be choppy. “Although price action has been a bit choppy lately,” ANZ comments, the bank believes that “the path of least resistance from here would appear to be higher given the recovery environment at stake in the market and the sentiment of global markets. overall that the RBNZ will be one of the first hikers.
NZD / USD breaks above the downtrend
Things look bullish for the NZD / USD, technically speaking; The pair broke above a downtrend that had been in play for most of the year, joining the highs of January 6 and 26 and February 3. The breakout opens the door to a possible test of the late-January high at just under 0.7250. A break above this level could open the door for a move up and forward towards the yearly high just north of 0.7300.