Currently, NZD/USD is trading at 0.7194, up 0.05% on the day, having posted a daily high at 0.7199 and low at 0.7190.
Market wrap: US CPI disappoints, stocks rally – Westpac
NZD/USD has been drifting higher after yesterday's bid from 0.7126 with a weak dollar as markets discount November rate hike before the U.S elections. Overnight, the milk auction was not supportive of the bid in the bird, but the kiwi continued to rise in risk-on market conditions regardless.
US CPI reviewed: reduces the urgency for the Fed to hike – Nomura
Analysts at Westpac explained that the rise of the past three-days looks corrective and should struggle around 0.7230 (which represents the early October's breakdown level).
"NZD/USD 1-3 month: Targets 0.6950 or lower as long as the RBNZ cuts to 1.75% in November and the Fed tightens to 0.625% in December, as we expect."
Meanwhile, current price is 0.7194, with resistance ahead at 0.7199 (Daily High), 0.7220 (Yesterday's High), 0.7224 (Daily Classic R3), 0.7251 (Weekly Classic R2) and 0.7317 (Weekly Classic R3).Next support to the downside can be found at 0.7190 (Daily Open), 0.7190 (Daily Low), 0.7189 (Hourly 20 EMA), 0.7183 (Daily Classic R2) and 0.7182 (Daily 20 SMA).