- Westpac (based on FXStreet)
The New Zealand Dollar exceeded expectations yesterday, rising well above the target level. Ultimately, the NZD/USD closed trade between the first and the second resistances, but technical studies retain their distinctly bearish signals in the daily timeframe. Technically, the Kiwi should undergo a correction today and retreat towards the weekly PP or at least fall under the 0.65 major level; however, amid market uncertainty we could also see a rally up to the immediate resistance, namely the weekly R1 and the 100-day SMA, circa 0.6580.
Market sentiment remains bullish, now at 68% (previously 66%). The number of purchase orders also improved, surging from 46 to 61%.