NZD/USD: bets are on the bid with 0.7280 supporting, target 0.7500 medium term

Currently, NZD/USD is trading at 0.7288, down -0.01% on the day, having posted a daily high at 0.7295 and low at 0.7284.

NZD/USD remains within a bullish trend on the longer dated sticks, although the bird met selling pressures through 0.7320 when the greenback picked up some momentum in the late part of the US session. However, momentum remains positive according to analysts at Westpac who are targeting the 0.7400 area next (Nov high).

Meanwhile, analysts at BNZ  explained that the NZD continues to be buoyed by New Zealand’s superior economic performance. "With a combination of above trend growth, rising inflation, a falling current account deficit, rising fiscal surpluses and a stable political environment, it’s really hard to find an excuse to sell the local currency.," explained the analysts, adding, "Eventually, all the positives will be built into its value and it will begin to drift lower."

US dollar index rebounds and ends higher ahead of NFP

NZD/USD 1-3 month:  

Westpac remains bullish for the medium term, "The month ahead could see NZD/USD extending beyond 0.7500 (Sep high) if the US dollar continues to register disappointment in the Trump Administration’s policies. Further ahead, though, the Fed’s tightening cycle plus US fiscal expansion should maintain upside pressure on US interest rates and the US dollar, pushing NZD/USD lower to 0.7000. Granted, the NZ economy is strong and dairy prices have risen, but these forces are subservient to the US dollar’s trend. (1 Feb)"

NFP Forecast: Will strong payrolls & wage growth help US dollar regain poise?

NZD/USD levels

The FXStreet OB/OS Index is reflecting oversold hourly conditions, while the FXStreet Trend Index is slightly bearish. The 200 sma on the 1hr sticks is at 0.7266 and has been a supporting factor on corrective attempts in the uptrend and ascending channel from 0.6960 that is attacking the descending resistance line on the daily sticks from early September highs.