NZD/USD sits at 3-months tops on upbeat NZ fundamentals

The Kiwi remains in close proximity to fresh multi-month tops on 0.73 handle, following the release of higher inflation expectations numbers published by the RBNZ.

Currently, the NZD/USD pair rises +0.47% to 0.7357, having posted fresh three-month highs at 0.7368 last hour. The major is now consolidating the renewed uptick and clings onto sharp recovery gains from a minor pullback to just ahead of 0.73 handle, as the bulls cheer upbeat NZ price pressures data.

The NZD/USD pair made a solid comeback and spiked to 0.7370 region, in a knee-jerk reaction after the NZ monthly economic indicators for Jan were published. The NZ Treasury reported, “Recent domestic data and business surveys point to a continuation of solid economic and employment growth over the second half of 2016.”

However, further gains look limited as the US dollar remains broadly bid, while moderate risk-aversion in Asia also weighs somewhat on the sentiment around the Kiwi. Meanwhile, markets now await the NZ GDT price index and US JOLTS job openings data due later in the NA session.

NZD/USD Levels to consider

To the upside, the next resistance is located at 0.7385 (daily R3), above which it could extend gains to 0.7400 (zero figure) and from there to 0.7450 (psychological levels). To the downside immediate support might be located at 0.7320 (5-DMA) and from there to at 0.7300 (10-DMA), below which 0.7251 (20-DMA) would be tested.