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20 May 2015
NZD/USD climbs higher towards 0.7400
FXStreet (Mumbai) - The New Zealand extends its gradual advance against the American dollar in the mid-Asian session, driving NZD/USD to fresh session highs. The Kiwi was the biggest winner this session as traders wound up their NZD shorts ahead of New Zealand's annual Budget on Thursday.
NZD/USD rises from 0.7345
Currently, the NZD/USD pair trades higher by 0.30% at fresh session highs of 0.7371, inching towards 0.74 handle. NZD/USD snapped its long run of losses and crept higher largely on a short-covering rally as traders preferred to square-off their NZD positions before tomorrow’s NZ annual budget release.
Thursday's 2014/15 Budget is expected to have little in the way of surprises, with Finance Minister Bill English already admitting that the government will not meet its surplus goal due to weak tax revenues on the back of soft inflation. New Zealand's National-led government is expected to announce a small Budget-surplus forecast for the following year though.
The Kiwi also remains buoyed after data released on Tuesday showed rising inflation expectations, with the RBNZ's Q1 inflation expectations survey showing the two-year ahead forecast for inflation is 1.85% annually, up marginally on the previous survey results of 1.80%.
Meanwhile, markets now turn focus towards Fed’s minutes due later today for further momentum.
NZD/USD Levels to consider
To the upside, the next resistance is located at 0.7400 levels and above which it could extend gains to0.7454 (May 18 High) levels. To the downside immediate support might be located at 0.7345 (Today’s Low) levels below that at 0.7314 levels.
NZD/USD rises from 0.7345
Currently, the NZD/USD pair trades higher by 0.30% at fresh session highs of 0.7371, inching towards 0.74 handle. NZD/USD snapped its long run of losses and crept higher largely on a short-covering rally as traders preferred to square-off their NZD positions before tomorrow’s NZ annual budget release.
Thursday's 2014/15 Budget is expected to have little in the way of surprises, with Finance Minister Bill English already admitting that the government will not meet its surplus goal due to weak tax revenues on the back of soft inflation. New Zealand's National-led government is expected to announce a small Budget-surplus forecast for the following year though.
The Kiwi also remains buoyed after data released on Tuesday showed rising inflation expectations, with the RBNZ's Q1 inflation expectations survey showing the two-year ahead forecast for inflation is 1.85% annually, up marginally on the previous survey results of 1.80%.
Meanwhile, markets now turn focus towards Fed’s minutes due later today for further momentum.
NZD/USD Levels to consider
To the upside, the next resistance is located at 0.7400 levels and above which it could extend gains to0.7454 (May 18 High) levels. To the downside immediate support might be located at 0.7345 (Today’s Low) levels below that at 0.7314 levels.