New Zealand Dollar holds early June high
The New Zealand Dollar (NZD) is holding near the top of its recent range against the US Dollar (USD), sitting in the mid-0.5900s at the time of writing after touching its best level since early June.
The New Zealand Dollar (NZD) is currently trading near its highest level in recent times against the US Dollar (USD). It is hovering around the mid-0.5900s, having reached its peak since early June. The pair has remained relatively stable on Thursday, but the trend over the past two weeks is clear, primarily due to a softer US retail sales report.
This report dampened expectations of a Federal Reserve rate hike in the coming month, causing the US Dollar to weaken and enabling the NZD to continue its rebound. New Zealand's exports are projected at NZ$8.09 billion, resulting in a narrow monthly surplus, while the annual balance remains in deficit near NZ$3.74 billion. Despite these figures being secondary to price action, the NZD/USD remains in a bullish position.
It is currently trading at 0.5943, comfortably above the 20-period Simple Moving Average (SMA) at 0.5909 and the 100-period SMA at 0.5878. The pair is advancing towards a cluster of overhead resistance, with immediate resistance at 0.5947 and a stronger barrier at 0.5955. On the downside, support is initially found at 0.5938, followed by 0.5935.
However, if the price dips further, it could test the 20-period SMA at 0.5909 and the 100-period SMA at 0.5878 for additional support.
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