NZD/USD: bulls pick up the pace and testing 0.7320 resistance, RBNZ eyed

Currently, NZD/USD is trading at 0.7320, up 0.03% on the day, having posted a daily high at 0.7377 and low at 0.7279.

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NZD/USD's bearish correction has bottomed out at 0.7280 support and bulls have taken the bird through the 0.73 handle and is testing through the 0.7320 while the DXY drops back from the day's highs. The dollar has otherwise been clawing back ground today but remains fragile given the uncertainty in markets. 

The kiwi has been a top performer along with the Aussie of late, attracting investors searching for yield while the NZ economy remains robust and coupled with the RBNZ's inflation expectations survey recently released that surprised markets with a healthy jump from 1.68% to 1.92%, sentiment is for a slightly hawkish tone to Thursday’s press release. "Speculative positioning in NZD/USD, proxied by CFTC futures positions of leveraged and non-commercial trader types, indicates longs are starting to be rebuilt and are at the highest level since November," explained analysts at Westpac.

NZD/USD levels

NZD/USD's 200 1hr sma has been supportive, today located at 0.7284 and the 20 dma comes in at 0.7244 as a further supporting line for this year so far in an ascending channel and bull's buying on dips from 0.6850. "The sharp rise in NZD/USD during the past month continues to reflect the pullback in the US dollar as well as continuing strength in the NZ economy. The November high at 0.7400 is now vulnerable, and should that break then 0.7485 will be in sight," argued analysts at Westpac.