What is the reason behind NZD making most of the broad-based sell-off in the USD? How is the NZDUSD pair currently trading? The 15 February NZDUSD Technical Analysis reveals.
15 February, GKFX – Backed by an uptick in inflation expectations, the New Zealand dollar is making most of the broad-based sell-off in the USD. The NZD/USD has hit a two-week high of 0.7394 in Asia and looks set to scale the 0.74 mark soon. As of writing, the currency pair is trading at 0.7385 – up 2.91 percent from the recent low of 0.7176.
The Kiwi dollar picked up bid yesterday after RBNZ’s March quarter survey showed firms revised their two-year inflation expectations to 2.11 percent from 2.02 percent. Meanwhile, the US dollar fell across the board despite the uptick in the consumer price index.
Also, the US stock markets remained bid despite treasury yields rising to fresh 4-year high post-CPI release. That seems to have worked in favor of the risk currencies like NZD.
15 February NZDUSD Technical Analysis
A break above 0.74 (psychological level) would expose resistance at 0.7420 (Jan. 31 high) and 0.7436 (Jan. 24 high). On the downside, a drop below 0.7363 (session low) would allow for a deeper pullback to 0.7308 (5-day MA) and 0.7290 (10-day MA).
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