NZD/USD: bulls challenge the 20 DMA

By FXStreet FXStreet (Guatemala) – NZD/USD is currently trading at 0.6580 with a high of 0.6606 and a low of 0.6551.

NZD/USD has continued with a better bid theme as we head into the close for the week while markets are still in risk-on mode after the FOMC minutes were slightly more dovish than expected realising investors an opportunity to trade riskier asset classes. We have seen new highs scored since yesterday’s business and the bears continued to be squeezed up to the 20 DMA at 0.6604.

Fundamentally, the RBNZ is predicted to cut rates in 2016 while the FOMC might be looking to decide on a rate hike as soon as Dec and according to Fed’s Loretta Mester who was speaking on CNBC yesterday, the data is likely ripe for a hike when he specifically talked about the jobs market and recent Nonfarm Payrolls results.

NZD/USD levels

Technically, the price is testing the 20 DMA is at 0.6604 while the key target on the upside would be the 200 DMA at 0.6949 at this stage while others the pair remains in a bearish trend longer term with the September lows to the downside as key target at 0.6220.
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Source:: FX Street