NZD/USD (current price: 0.7255)
The New Zealand Dollar remained relatively strong this week, although the currency corrected back to 0.72 as the U.S. Dollar rallied against the majors. The Kiwi is now back near the 0.7250 level after last week’s bearish reversal, despite the downward pressure from commodities and the speculation regarding a U.S. rate hike. New Zealand Business Confidence came in at 15.5 yesterday, in line with the consensus estimate; while this morning’s negative Australian releases didn’t hurt the NZD.
Our assessment: NZD/USD is trading just 1% below the prior high around the 0.7350 resistance, as the broad Dollar rally only caused a relatively small correction, leaving the advancing long-term trend intact.
