NZD/USD extends gains and test levels above key resistance at 0.6660
- Kiwi outperforming during the American session as pressure eases.
- NZD/USD having the best day in weeks, erases weekly losses.
The NZD/USD keeps rising on Friday and reached at 0.6663, the highest level in two weeks. It is hovering near the top, posting modesty weekly gains, after recovering more than a hundred pips from Wednesday’s low.
The kiwi was able to recover after falling on the back of speculation about the possibility of negative interest rates from the Reserve Bank of New Zealand (RBNZ). But the central bank tapered their bond purchases again. New Zealand will hold elections next week. The incumbent PM Jacinda Ardern is expected to win. Analysts see the election posing no significant risk to the kiwi.
USD, NZD and technicals
The combination of an improvement in market sentiment, a weaker US dollar and a rally in NZD/AUD is boosting the NZD/USD. It is having the best performance since late August, and it climbed back above the 230-day moving average.
The NZD/USD is testing levels above the 0.6650 key resistance area, and a consolidation above would likely point to further gains. The next target might be seen around 0.6700.
A failure around current level would suggest more consolation ahead between 0.6650 and 0.6540/50. A daily close clearly below 0.6540 (key horizontal support / 100-day moving average) would suggest more losses ahead.
Additional levels