NZD/USD bulls with sights on a break of 0.7120

Currently, NZD/USD is trading at 0.7099, up 0.05% on the day, having posted a daily high at 0.7124 and low at 0.7082.

NZD/USD continues with its bullish intentions today fuelled yet again by further dollar weakness across the board as well as a decent bill of health in the business sector of NZ as reported overnight. A fresh high was posted and faded earlier as the 10-year yields found traction just below 2.20% and as the DXY picked up demand at 96.90. However, the greenback is in highly bearish territory and data today is not helping. 

ANZ NZ business confidence: good times can go on longer - ANZ

Overnight, the semi-annual Financial Stability Review highlighted reduced risks in the NZ financial system, although global uncertainty remains. "Recovering dairy prices have helped dairy farms to return to profitability but banks still need to be vigilant.  May ANZ business confidence improved to 14.9 (prior 11) while activity steadies around 38 (prior 37). Inflation expectations increased to 2.0% (prior 1.8%)," explained analysts at TD Securities. 

NZD/USD levels

NZD/USD's rising 20 4hr sma at 0.7095 today that has been supporting the ascending channel. 0.7040 and 0.7080 remain the near-term supports below there. wider and below the 20 4hr sma lies 0.7000, 0.6980 and the 50 daily sma at 0.6955 are the key supports. Next resistance is 0.7120 the high ahead of and 0.7148.