Chart - Courtesy Trading View
NZD/USD was trading 0.68% higher on the day at 0.7044 at around 07:35 GMT.
Reserve Bank of New Zealand (RBNZ) posted sharp inflation expectations numbers on Thursday, stoking rate hike expectations.
The RBNZ has posted the country's inflation expectations to 3.7%, the highest since 2010. The central bank targets to keep inflation between 1% to 3%, with a central target of 2%.
Markets are pricing in a 25-bps rate hike at each RBNZ meeting, making it an aggressive rate hike cycle compared to any major central bank.
Broader risk sentiment will drive price action. Focus also on US Initial Jobless Claims data and ISM Philadelphia Fed Manufacturing Survey for Nov for impetus.
Major Support Levels:
S1: 0.7023 (5-DMA)
S2: 0.6987 (cloud top)
S3: 0.6970 (23.6% Fib)
Major Resistance Levels:
R1: 0.7052 (50-DMA)
R2: 0.7062 (200H MA)
R3: 0.7089 (200-DMA)
Summary: Technical analysis shows the pair has bounced off daily cloud support and has broken above 5-DMA.
Price action is headed to test 200H MA resistance at 0.7062, decisive break above will fuel further gains.


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