Chart - Courtesy Trading View
NZD/USD was trading 1.05% higher on the day at 0.6142 at around 06:00 GMT.
The pair is extending gains for the second straight session, scope for further upside.
Data released earlier on Tuesday showed New Zealand's inflation rate blew past expectations in the third quarter stoking expectations of more interest rate hikes.
Statistics of New Zealand reported that inflation rose by 2.2% QoQ, beating estimates of 1.5%, exceeding the previous quarter’s reading.
Further, the reading on an yearly basis came at 7.2%, above 6.5% YoY estimates, cementing the RBNZ’s case for further tightening.
Technical Analysis:
- NZD/USD technical bias is turning bullish
- Price action has edged above 200H MA
- 5-DMA has turned and GMMA shows bullish shift on the intraday charts
- Bullish RSI divergence on the daily charts adds to the downside bias
Major Support Levels: 0.5649 (200H MA), 0.5624 (5-DMA)
Major Resistance Levels: 0.5711 (21-EMA), 0.58
Summary: NZD/USD pivotal at 21-EMA resistance. Decisive break above 21-EMA to take the pair higher.
