NZD/USD bulls remain in control, but for how long?

Currently, NZD/USD is trading at 0.7284, up 0.30% on the day, having posted a daily high at 0.7297 and low at 0.7237.

US Dollar finds resistance around 101.00

NZD/USD bulls remain in control, while New Zealand offers some form of stability in respect to geopolitical tensions around the world at the moment and the dollar remains at the mercy of daily sentiment in respect to the Fed and Trump. 

"While we can envisage scenarios where USD and AUD strength will prove to be challenging for the Kiwi, it is difficult to overlook political stability, fiscal flexibility, solid domestic fundamentals, and elevated interest rates," argued analysts at ANZ, adding, "The end result is one that will likely see the NZD hold up fairly well even in the face of a USD comeback." 

However, on a medium term outlook, The Fed’s assertive tightening projections plus US fiscal expansion should maintain upside pressure on US interest rates and the US dollar, put forward by analysts at Westpac, adding,  "Against that, the NZ economy is strong and dairy prices have risen, but these forces are subservient to the US dollar’s trend." 

NZD/USD levels

Spot is presently trading at 0.7286, and next resistance can be seen at 0.7289 (Daily Classic R1), 0.7297 (Daily High), 0.7315 (Daily Classic R2), 0.7332 (Weekly Classic R1) and 0.7343 (Daily Classic R3). Next support to the downside can be found at 0.7286 (Yesterday's High), 0.7275 (Monthly High), 0.7275 (Weekly High), 0.7275 (YTD High) and 0.7274 (Daily Open).