NZD/USD: sideways in early Asia, consolidating fresh post FOMC lows

Currently, NZD/USD is trading at 0.7043, up 0.14% on the day, having posted a daily high at 0.7047 and low at 0.7033.

NZD/USD is consolidating the lows after yesterday's and today's sell-off post FOMC and Trump inspired rally in the greenback.

Market wrap: dollar makes further gains, big levels across the board - Westpac

US dollar index extends rally to fresh 13-year highs above 103.00

Analysts at Westpac noted that the momentum has flipped to negative, thanks to the US dollar's surge yesterday, with the next major target at 0.6970, and offered a longer term outlook as follows:

NZD/USD 1-3 month:

"Below 0.6970. The US dollar has had an impressive rise since the US election and has potential to rise further during the months ahead. The Fed's assertive tightening projections plus US fiscal expansion should maintain upside pressure on US interest rates and the US dollar. Against that, the NZ economy is strong and dairy prices have risen, but these forces are subservient to the US dollar's trend."

NZD/USD levels

Spot is presently trading at 0.7044, and next resistance can be seen at 0.7047 (Daily High), 0.7065 (Weekly Classic S1), 0.7066 (Daily Classic S1), 0.7066 (Daily 200 SMA) and 0.7067 (Hourly 20 EMA). Support below can be found at 0.7034 (Daily Open), 0.7034 (Weekly Low), 0.7033 (Daily Low), 0.7017 (Daily Classic S2) and 0.7010 (Yesterday's Low).