NZD/USD: eyes on the 0.7050 psychological level

Currently, NZD/USD is trading at 0.6995, up 0.02% on the day, having posted a daily high at 0.6999 and low at 0.6990.

NZD/USD is consolidating the dollar weakness after a strong rally from 0.6880 last week and an extension of that move overnight.  There were no significant shifts in tone or data overnight and thus the usual ranges apply. Analysts at Westpac explained that the weakening US dollar continues to lift NZD/USD, towards 0.7050 today.

Forex today: dollar remains on the back-foot, DXY -0.16% now below 97 handle

NZD/USD 1-3 month:  

The analyst's longer term outlook applies the Fed’s tightening cycle plus US fiscal expansion that they said should maintain upside pressure on US interest rates and the US dollar, pushing NZD/USD below 0.6700 by year end. "However, local factors are mostly supportive: a strong NZ economy, higher dairy prices, and higher inflation; but the RBNZ less convinced (15 May)."

NZD/USD levels

The 0.7000 level is now in play. The 17th April highs of 0.7035 ahead of 0.7060/70, are the next major resistance area through the 200-d ema (0.7032). The double bottom at 0.7130 as the mid-Feb lows could be a strong area of resistance for today. To the downside, 0.6950, 0.6900 and 0.6880, where the 4hr ma's gather along with 0.6840 are the near term supports.