NZD/USD has pressed forward, creeping higher throughout this session on a drifting Greenback. USD has weakened broadly this session, with the last of the Dollar shorts closing out after continued positive macro data has risen expectations of an earlier than expected rate hike. Pair is currently trading at 0.7083, up 26 pips from the open.
Kiwi, Aussie and Gold bullion all hold a triple correlation with each other. Australia have huge Gold reserves and so their economy and currency are tightly linked. New Zealand relies on Australia as one of its major importers.
Gold has continued inching upwards this session, after breaking $1100, and now trading $6 up from open at $1113. Market is citing Asian central banks buying on dips for the rise. As such, AUD has followed up nearly 30 pips on the session, and NZD has imitated the Aussie.
Kiwi is hovering around our primary resistance level from the previous session, at 0.7080 (Dec 24 High). Should the pair push higher mark 0.7102 (Day High 21 Dec) as next key resistance. For primary support take previous session low, 0.7052, as our barrier.