NZD/USD: headed for a break of 0.7334/37

Currently, NZD/USD is trading at 0.7321, up 0.05% on the day, having posted a daily high at 0.7324 and low at 0.7313.

Wall Street records modest gains as FOMC meeting gets underway

NZD/USD has risen up to a consolidation of the recovery from 0.7247. The dollar was beaten up a little towards the end of the US session while US yields instead rose ahead of the FOMC meeting tonight. Crossflows also underpinned the antipodeans as well as robust metals prices once again, despite the RBA's forecasts for oversupply in the quarters ahead.  

Meanwhile, Westpac's outlook stays with the whether the RBNZ remains firmly on hold, as they expect, and the US dollar rises on tighter Fed policy, then, they said, that NZD/USD could fall as far as 0.70 by year-end. "Pre-election jitters may also weigh on the NZD," they added, with the elections this weekend. 

NZD/USD levels

Trading at 0.7321 currently, to the upside, a break of 0.7334/37 recent highs and lastly 0.7370 (9th Aug high), the momentum would solidify a bullish trend back towards 0.7522 and the YTD highs. To the downside, a break of 0.7294, as the 23.6% Fib of 0.7132/0.7344 rally and a subsequent break of o/n support at 0.7280, and then 0.7220 would expose 0.7195 as a recent low. 0.7127 is the June 6th low and 0.7100 is a key psychological level.