NZD/USD (current price: 0.6975)
The pair had a positive day on Thursday, as the hawkish RBNZ statement and the U.S. GDP miss propelled the Kiwi higher compared to the U.S. Dollar. NZD/USD remains in a well-defined short-term uptrend after a successful test of the 0.65 support zone. The sell-off in equities might be a worrying sign for the Kiwi, but the central bank’s decision to keep the benchmark interest rate unchanged might trigger a durable rally in the pair. Traders will likely focus on the short-term resistance level at 0.6975 today.
Our assessment: NZD/USD could rise above the 0.7 level next week but we expect a correction today, after the slight reversal yesterday afternoon.
