FOREX – NZD/USD Currency Pair Stretches Solid Up-move Beyond 0.7100 Region
The NZD/USD forex pair got the attention of some solid purchasing interest today and rose thru the 0.7100 handle to seven-day peaks.
Trading as of this update around the 0.7120 level, the currency tandem capitalized on its recovery move from a four-month dip and was enjoying broad based US dollar weakness.
A big decline in the US Treasury bond yields, spurred by Wednesday’s perceived dovish FOMC meeting results, resulted to flows away from the USD and benefitting bigger-yielding currencies like the Kiwi.
Consistent bias in the greenback selling looks to have forced investors to ease up on aggressive bearish stance, made after lingering worries regarding the political doubts in New Zealand.
Hence, a follow through up-move, backed by some technical purchasing on a continued move beyond the 0.7100 spot, now seems a far occurrence.
Wall Street analysts will tackle today the release of PPI figures as well as weekly unemployment claims from the US, which along with Fedspeaks would now be scrutinized for some fresh push.
Meanwhile, a follow-thru purchasing interest has the probability to continue carrying the NZD/USD forex pair back to the 200-day SMA near the 0.7150-60 spot, above which the pace could get streched towards the 0.7200 level.