NZD/USD keeps marching higher and reaches 0.6900

The New Zealand dollar reaches 0.6900 in a three-day rally.
The kiwi extends gains amid a moderate risk appetite and USD weakness.
NZD/USD aiming towards 0.6925 this week – Westpac.

Guillermo Alcala FXStreet

The New Zealand dollar has surged about 1% against the USD so far on Thursday, to extend its three-day rally from 0.6730 lows to session highs right at 0.6900.

The kiwi appreciates on post-Fed dollar weakness

The US dollar is losing ground across the board, weighed by a pull-back on US bond yields. The Federal Reserve‘s first interest rate hike in more than three years and its plan to gradually normalize monetary policy has failed to provide support to the USD and the US Dollar Index is nearly 0.7% down on the day, testing two-week lows around 97.80.

The NZD has taken advantage of the US dollar's weakness to appreciate further amid a mixed market mood. Investors remain fairly optimistic about the possibility of seeing some progress in the Russia – Ukraine talks and the US equity markets are posting moderate gains after a mixed session in Europe.

Furthermore, the Chinese Government’s pledge to roll out a new economic stimulus program triggered a fresh impulse to the NZD, as China is one of New Zealand’s main trading partners.

NZD/USD aiming towards 0.6925 this week – Westpac

According to FX Analysts at Westpac, the pair might extend towards 0.6925 this week: “NZD/USD retains upward momentum and is poised to test 0.6875 and then 0.6925 during the week ahead (…) While geopolitical risks will restrain the NZD during the weeks ahead, by year-end we target 0.7100+.”

Technical levels to watch

NZD/USD

Overview
Today last price	0.6884
Today Daily Change	0.0046
Today Daily Change %	0.67
Today daily open	0.6838

Trends
Daily SMA20	0.6776
Daily SMA50	0.6729
Daily SMA100	0.6816
Daily SMA200	0.6918

Levels
Previous Daily High	0.6845
Previous Daily Low	0.6741
Previous Weekly High	0.6926
Previous Weekly Low	0.6796
Previous Monthly High	0.681
Previous Monthly Low	0.6565
Daily Fibonacci 38.2%	0.6805
Daily Fibonacci 61.8%	0.6781
Daily Pivot Point S1	0.6771
Daily Pivot Point S2	0.6704
Daily Pivot Point S3	0.6667
Daily Pivot Point R1	0.6875
Daily Pivot Point R2	0.6912
Daily Pivot Point R3	0.6979

Author

Guillermo Alcala

FXStreet

Graduated in Communication Sciences at the Universidad del Pais Vasco and Universiteit van Amsterdam, Guillermo has been working as financial news editor and copywriter in diverse Forex-related firms, like FXStreet and Kantox.

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