The kiwi was bolstered by stronger NZ inflation expectations earlier today
The report earlier here pretty much seals the deal for a rate hike by the RBNZ next week as the kiwi is staying buoyed so far on the day.
NZD/USD is up 0.7% to 0.7050 and keeping at the highs going into North American trading, with the dollar keeping more on the backfoot alongside the yen today.
The daily chart shows NZD/USD buyers are keeping a defense just below 0.7000 with price now pushing back above the 100-day moving average (red line) of 0.7024.
However, the near-term bias is still keeping more neutral as price action resides in between the key hourly moving averages of 0.7026 and 0.7061. As such, gains are limited closer to the latter and a break above that is what is needed for the bounce to extend.
That said, the 200-day moving average (blue line) sits nearby @ 0.7090 in terms of limiting any major upside momentum so there is that to look out for.
As much as risk sentiment is holding up fairly decently (S&P 500 futures up 0.3%) and the NZ inflation expectations report earlier is propping up the mood in the kiwi, I would argue that a continued shove lower in AUD/NZD is also helping:
The pair is establishing a series of lower highs, lower lows recently and is now contesting the 8-9 November lows @ 1.0330-35 as sellers look to try and work towards key trendline support @ 1.0310 as well as the 1.0300 handle next.
