NZD/USD (current price: 0.7215)
The New Zealand Dollar has been relatively strong in recent days after dipping below the crucial 0.70 level last week. The Kiwi bounced off multiple times from the 0.7125 resistance this week, and it has lost ground today in early trading following the Yen’s jump. The ANZ New Zealand Business Confidence Index also dropped to 16 from the previous reading of 20.2 and that also pushed the risk-on currency lower. The zone around 0.70 might remain in focus in the coming sessions, especially if the BOJ disappointment leads to a correction in global stock markets.
Our assessment: The pair is still looking slightly bullish on as the 0.6960 line continues to hold, but prior high near 0.7325 seems distant despite the risk-rally of the past few weeks.
