NZDUSD Finally Finds Post RBNZ Supply Today


NZDUSD breaks higher today

The RBNZ raises rates by 50 basis points on Wednesday. That day, the NZDUSD

NZD/USD

NZD/USD is a commonly offered currency pair representing the New Zealand Dollar or Kiwi and US Dollar. The pair is popular for exposure to a commodity currency, namely the NZD, which helps capture traders’ risk appetite. Like its Antipodean counterpart, the Australian dollar, NZD/USD is seen as carry, in part due to interest rate differentials favoring the NZD. The NZD is the seventh most liquid pair in the world at the time of writing, with the USD being the most traded currency in the world and the NZD being the tenth. What affects NZD/USD? NZD/USD is offered by virtually all retail forex brokerages and is a common pair that traders may have experience with. The pair moves based on investor sentiment and can be much more volatile than other pairs such as EUR/USD, GBP/USD and others. Given that New Zealand is the world’s largest exporter of powdered milk, this metric is a key factor when driving the pair. Any sensitivity to milk powder exports is captured via the NZD/USD. Additionally, tourism is a key contributor to the New Zealand economy and as such helps move the currency pair. Other factors of note for NZD/USD include export volumes to China as well as other important economic data releases from China. Central banks also play a huge role in the direction of the currency pair, with the US Federal Reserve and the Reserve Bank of New Zealand being closely watched by investors. Monetary policy is more than capable of sharply moving NZD/USD, which can swing much more than other normal pairs.

NZD/USD is a commonly offered currency pair representing the New Zealand Dollar or Kiwi and US Dollar. The pair is popular for exposure to a commodity currency, namely the NZD, which helps capture traders’ risk appetite. Like its Antipodean counterpart, the Australian dollar, NZD/USD is seen as carry, in part due to interest rate differentials favoring the NZD. The NZD is the seventh most liquid pair in the world at the time of writing, with the USD being the most traded currency in the world and the NZD being the tenth. What affects NZD/USD? NZD/USD is offered by virtually all retail forex brokerages and is a common pair that traders may have experience with. The pair moves based on investor sentiment and can be much more volatile than other pairs such as EUR/USD, GBP/USD and others. Given that New Zealand is the world’s largest exporter of powdered milk, this metric is a key factor when driving the pair. Any sensitivity to milk powder exports is captured via the NZD/USD. Additionally, tourism is a key contributor to the New Zealand economy and as such helps move the currency pair. Other factors of note for NZD/USD include export volumes to China as well as other important economic data releases from China. Central banks also play a huge role in the direction of the currency pair, with the US Federal Reserve and the Reserve Bank of New Zealand being closely watched by investors. Monetary policy is more than capable of sharply moving NZD/USD, which can swing much more than other normal pairs.
Read this term moved higher extending above Monday’s trade high in the process on its way to 0.65135.

However, the buyers turned to sellers, the price fell back below a swing zone between 0.64908 and 0.6499, and the pair did not stall until it got closer to the rising 100-hour moving average. This same moving average blocked the drop earlier in Wednesday’s session ahead of the interest rate decision.

The price action yesterday was up and down, but what is important from a technical perspective is that The 100 hourly moving average (blue line) held support on two separate lows at (see blue line). The not so good news was that the highs were lower since Wednesday’s high (see yesterday’s article: “NZDUSD remains above its 100 hourly moving average on tips… But the bullish momentum continues to ‘be difficult”)

However, in today’s trading, Asian session price was able to extend above the upper falling trendline, and also work its way above Monday’s swing high, from yesterday’s swing high and ultimately from Wednesday’s swing high as well.

Wednesday’s high held support in the London morning session at 0.65135, helping to give buyers additional confidence to push higher. The price was also able to extend above the 38.2% retracement of the decline from the April 5 high. This level sits at 0.65289. Current prices just above this level at 0.6532.

And now?

With the break above Wednesday’s swing top, this level will now be near support/risk for buyers at 0.6513.. A closer support would be the 38.2% retracement at 0.65289. It would take a move below 0.65131 to disappoint bulls looking for added momentum, at least in the short term. A move below that 0.6513 level should lead to a swing towards the 0.6490 area (and then see what happens there).

On the upside, the May 5 swing high stands at 0.6567. That would be the next bullish target. Above this, traders will look to a swing zone between 0.6580 and 0.6590 (see the numbered green circles in the chart above).


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