NZD/USD: consolidating the impressive recent performance to mid 0.71 handle

NZD/USD is currently trading at 0.7115 with a high of 0.7151 and a low of 0.7096.

The week has started out with most of the attention on sterlings drop and the weekend news around a hard Brexit. Except for the dairy auction later this week, the calendar is light for the Kiwi and indeed the week will be centred around outside developments in Europe and the US with Trump's inauguration - However, the Kiwi is take up attention in the wake of a weaker greenback.

US economic outlook: risks remain significant - Nomura

NZD/USD levels

Dollar correction over? - BBH

NZD/USD has been one of the top performers for the end of last week, testing the resistance of the ascending 200 dma that is currently situated at 0.7128. 0.7150 is a key area of resistance while 0.7200 likely holds protection that if broken quickly brings in the early november highs, likely on a break of the 0.7240 high of 14 Dec as noted by analysts at Westpac.

NZD/USD 1-3 month: 

Ultimately, the analysts at Westpac have a more bearish outlook to 0.6800. "The US dollar has had an impressive rise since the US election and has potential to rise further during the months ahead. The Fed’s assertive tightening projections plus US fiscal expansion should maintain upside pressure on US interest rates and the US dollar. Against that, the NZ economy is strong and dairy prices have risen, but these forces are subservient to the US dollar’s trend. (21 Dec)."