NZD/USD (current price: 0.7428)
The New Zealand Dollar continued to outperform other risk-on currencies in recent weeks, as we expected, and yesterday’s decision by the RBA to keep interest rates unchanged gave another boost to the Kiwi. The pair hit a new 52-week high yesterday and it continues to march higher today in early trading, as the Dollar remains weak this morning. The surprising jump in the GDT Dairy Price Index also helped the cross, as it’s getting close to the crucial 0.75 level.
Our assessment: NZD/USD is back above the 0.74 following a very strong day, as the underlying long-term trend is still bullish, but the pair faces strong resistance below 0.75.
