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NZD/USD extends rally but stalls near key moving averages
After the latest US inflation report cooled expectations for a Fed rate hike, NZD/USD was last at 0.5809, up more than 1% on the day.
The New Zealand dollar extended its rally versus the US dollar, with NZD/USD last trading at 0.5809, up more than 1%. FXStreet linked the move to the latest US inflation report, which tempered market speculation of a Fed rate hike and reduced investors' bets by about half.
Despite the gains, the pair remains capped by a cluster of key trend indicators. The NZD/USD is still trading below the 50- and 200-day simple moving averages, around 0.5810 to 0.5819, and sellers stepped in after the pair reached a daily high of 0.5843.
Technical signals point to shifting momentum, however. FXStreet said the RSI turned bullish on July 9 and that price action consolidated around 0.5750 for three days before pushing back toward 0.5800.
FXStreet outlined levels to watch if buyers press higher, including a test of the 100-day SMA near 0.5834 and then the March 19 high at 0.5892. On the downside, the pair would need to break the day’s low at 0.5744, which could open the door to a move toward 0.5700, followed by demand near the July 8 low at 0.5672.