NZD/USD extends higher as buyers look to seize control

Technical Analysis

Author: Justin Low | nzdusd

NZD/USD touches a high of 0.6826 on the day

The kiwi is rather buoyant as US-China trade talks look to proceed to the next level and that is helping the currency rally to start the day. Aside from that, a weaker dollar is also helping to play into the hands of NZD/USD buyers as they look to hold a break above the 200-day MA (blue line) @ 0.6795.

In doing so, buyers will then establish a more robust bullish bias in the pair and that will open up a possible extension towards resistance @ 0.6877 next. But for now, price is doing battle around the resistance level @ 0.6819. Commodity currencies are trading at the highs for the day now against the dollar and they will be a key spot to watch out for as we close out the week.

The key risk event for today will be US December CPI figures to be released later. If that solidifies the notion that the Fed should indeed think about pausing rates after the dovish comments yesterday, it will be the spark for a further move higher in risk currencies and invite more upside for NZD/USD.

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