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21 May 2015
NZD/USD extends beyond 0.7300
FXStreet (Mumbai) - The New Zealand climbed higher against the American dollar in the mid-Asian session, lifting NZD/USD to fresh session highs above 0.73 handle. The Kiwi extends its recovery from fresh two month lows reached at 0.7282 on Wednesday; tracking broad US dollar weakness after the Fed minutes showed June rate hike seems unlikely. While the NZ budget release showing a deficit instead of a surplus forecasted for the 2014/15 year kept a lid on the prices.
NZD/USD back above 0.73 barrier
Currently, the NZD/USD pair trades higher by 0.27% at fresh session highs of 0.7329, recovering from 0.7298 lows. NZD/USD ended its losing streak and turned in green this session largely on the back of an offered tone maintained by the greenback against its major competitors following yesterday’s Fed minutes release which was viewed as more dovish by markets.
Moreover, markets seem to have moved past NZ budget release which revealed A deficit of $684 million is forecast for the 2014/15 year. In last year's Budget release, Treasury had forecast a $372 million surplus for this year. In the 2015/16 year the books are expected to record a bite-sized surplus of $176 million, which will balloon to $3.6 billion by 2018/19.
Also, recovery in oil and gold prices also added to the gains in the commodity currency. Meanwhile, markets now turn focus towards a raft of economic releases from the US due later today for further momentum on the pair.
NZD/USD Levels to consider
To the upside, the next resistance is located at 0.7400 levels and above which it could extend gains to0.7454 (May 18 High) levels. To the downside immediate support might be located at 0.7345 (Today’s Low) levels below that at 0.7314 levels.
NZD/USD back above 0.73 barrier
Currently, the NZD/USD pair trades higher by 0.27% at fresh session highs of 0.7329, recovering from 0.7298 lows. NZD/USD ended its losing streak and turned in green this session largely on the back of an offered tone maintained by the greenback against its major competitors following yesterday’s Fed minutes release which was viewed as more dovish by markets.
Moreover, markets seem to have moved past NZ budget release which revealed A deficit of $684 million is forecast for the 2014/15 year. In last year's Budget release, Treasury had forecast a $372 million surplus for this year. In the 2015/16 year the books are expected to record a bite-sized surplus of $176 million, which will balloon to $3.6 billion by 2018/19.
Also, recovery in oil and gold prices also added to the gains in the commodity currency. Meanwhile, markets now turn focus towards a raft of economic releases from the US due later today for further momentum on the pair.
NZD/USD Levels to consider
To the upside, the next resistance is located at 0.7400 levels and above which it could extend gains to0.7454 (May 18 High) levels. To the downside immediate support might be located at 0.7345 (Today’s Low) levels below that at 0.7314 levels.