The NZD is the best performing major currency on the day
The kiwi and aussie are at opposite ends today, as AUD/NZD selling is helping to prop up the kiwi among the major bloc.
The pair's upside move yesterday stalled at the 50.0 retracement level once again before today's CPI data sent the aussie lower. While the inflation figures were not awfully bad, the trimmed mean reading still short of the 2-3% target band by the RBA means that it is going to be quite a while before the RBA even considers raising rates.
Household debt and credit data isn't going to help their case as well, but that's a different conversation for a different time.
Anyway, as AUD/NZD extends its decline we can see that NZD/USD is also making strides on the day. Yesterday's dollar strength early in the day saw the NZD/USD head lower to test the 76.4/23.6 retracement level on the daily chart, before bouncing back.
Right now, buyers are in control of the pair once again as we broke through the 100 and 200-hour MAs when you look at the hourly chart. That will likely give conviction for buyers to drive the price higher.
The next level to the upside to look out for is the 0.7433 level that we've twice tested in September last year and earlier this month.
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