NZD/USD trims gains to the 0.7280 zone, heads for the highest close in months
- Kiwi continues to be the top G10 performer on Wednesday on hawkish RBNZ.
- NZD/USD heads for the highest close since February despite pullback.
The NZD/USD corrected lower during the American session and fell to 0.7282, after reaching earlier at 0.7315, the highest level since February 26. The kiwi is the best performer on Wednesday among G10 currencies.
The kiwi jumped across the board following the Reserve Bank of New Zealand (RBNZ) meeting. The central bank surprised with a hawkish tone that sent NZD/USD sharply higher, breaking key short-term technical levels.
The RBNZ revised growth figures to the upside and validated somewhat what market pricing looks for: a first rate hike during the third quarter of next year. “In light of today’s hawkish outlook on rates by the RBNZ we have raised out 3 month forecast for NZD/USD very moderately from 0.72 to 0.73”, wrote analysts at Rabobank.
Despite the correction of the last hours, NZD/USD still heads for the highest close since February. A close above 0.7300 should clear the way to more gains. On the flip side, a slide under 0.7250 would alleviate the bullish bias.
The rally of the kiwi pushed the ADU/NZD cross to the lowest in four months. ANZD/USD is having the worst day in months, breaking the 1.0700 support area. It bottomed at 1.0623, and it remains under pressure, near the bottom.
Technical levels
Author
Matías Salord
FXStreet
Matías started in financial markets in 2008, after graduating in Economics. He was trained in chart analysis and then became an educator. He also studied Journalism. He started writing analyses for specialized websites before joining FXStreet.
