FXstreet.com (London) - New Zealand dollar has risen unabated throughout this year, and the strength of NZD is damaging the export economy. The central bank recently hiked rates to 3.75%, however analyst consensus is that the back-to-back rates will continue until NZD appreciation slows.
NZD/USD has moved from lows of 0.4894 in March this year, peaking at 0.7634, before making a correction to its current level of 0.7167/71. The move has been largely technical in the face of dollar strength and broader macro effects.
For support we look at yesterdays low of 0.7079 and on the upside for the Kiwi,primary as 0.7261 (which tested twice last week) and also 0.7299 (which also tested twice last week before receding and retesting our primary resistance of 0.7261).
Like other non-major currencies NZD will take its cues from broader macro data from around the world due to lack of meaningful local data.
The New Zealand Herald reamrks on Kiwi performance across the board: The kiwi edged lower against the Australian dollar, to A78.19c at the local open from A78.34c at 5pm, and fell to 63.97 yen from 64.40. The NZ dollar was little changed at 0.4820 euro at the local open, while the trade weighted index slipped to 64.09 at 8am from 64.22 at 5pm.