NZDUSD gains as USD drops sharply.
New Zealand Dollar is the winner today as it gains over 0.50 percent to 0.6640 taking advantage from USD weakness. The NZDUSD rally which started since last Friday low at 0.6501, a level that reached due to interest rate cut by RBNZ the previous week, accelerates as the pair broke above the critical hourly moving averages and now threats the resistance at 0.6646 where the 50-day moving average crosses. A break above that level can accelerate the rally up to 0.67 round figure and the 200 day moving average. On the downside immediate support stands at 0.6598 the 50 hour moving average, I will stay long as long as the pair trades above that level, and will close any long positions if the pair breaches below 0.66. All in all, the technical picture for the pair is bullish and any pullback can be considered as a buy opportunity for the short term. An extra bonus for the Kiwi is the fact that the central Bank has already cut interest rates and we don’t expect any further cuts till the end of the year, despite recent disappointing macro data.