NZD/USD eventually rips to the 0.73 handle on CPI Q4

Currently, NZD/USD is trading at 0.7301, up 0.36% on the day, having posted a daily high at 0.7309 and low at 0.7248.

Finally, Wall Street and the Dow got there, 20,000 was done within minutes of the open

NZD dropped initially on the CPI readings on the back of the errors in the y/y data, but has since reversed and rallied on to test 0.7300. New Zealand Q4 CPI arrived at 0.4 % q/q vrs the expected 0.3% and 1.3% y/y vrs exp. 1.2%. The biggest news in the data came with household price inflation that is up from a historical low of 0.1 percent for the December 2015 year. Additionally, non-tradable goods and services showed a 2.4 percent increase (for the q/q, non-tradables +0.6%). Meanwhile, overnight the dollar was sideways yet the stock market ripped from the get go and Trump's pro business policies are fueling a risk-on sentiment. "That said, there was no fresh pro-growth policy news today and if anything Trump’s administration’s has been focusing on less market friendly themes of border and immigration control," explained analysts at Westpac. 

NZD/USD 1-3 month:  

The same analysts at Westpac are expecting the price to eventually turn south to 0.6800. "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. (21 Dec)"

NZD/USD levels

Current price is 0.7301, with resistance ahead at 0.7307 (Weekly Classic R2), 0.7309 (Daily High), 0.7313 (Daily Classic R2), 0.7349 (Daily Classic R3) and 0.7387 (Weekly Classic R3). Next support to the downside can be found at 0.7287 (Yesterday's High), 0.7280 (Daily Classic R1), 0.7275 (Daily Open), 0.7275 (Monthly High) and 0.7275 (Weekly High).