NZD/USD (current price: 0.6826)
The New Zealand Dollar finished significantly higher yesterday following the RBNZ’s Financial Stability Report. The currency drifted higher throughout the day as we expected, but it is down slightly today in early trading. The short-term outlook remains bullish as long as the pair stays above the 0.6790-0.6800 support zone. Further volatility is expected for the Kiwi this week, as the quarterly Retail Salesdata is being released this evening.
Our assessment: The pair might continue higher today, especially if the weak rally in risk assets continues. The 0.687 level is likely to cap the advance as multiple resistance lines are present near that zone.
