NZD/USD Advances On RBA's Hawkish Stance, US Dollar Remains Week
The NZD/USD pair advanced during the North American session ahead of the US 4th July holiday. The liquidity in the NZD/USD & other pairs will remain thin on independence day which will also limit any USD advance as well.
The NZD/USD pair received a boost due to the hawkish hold set by the RBA (Royal Bank of Australia), which was followed by a soft tone of the greenback. After touching 0.6140 (daily low), the pair was last seen trading at 0.6197 with a 0.75% gain.
NZD/USD: Short-Term Remains Neutral
For now, the NZD/USD will likely remain neutral with a bias towards the downside. In addition, the 200 EMA is present at 0.6225, which will put a lit on the NZD's advance against the USD.
On the technical front, there's also another pattern called '3 advancing soldiers,' which is a sign of strong NZD's buying momentum. Furthermore, the RSI is also inching towards the bullish range which also tells us that NZD may advance higher.
However, the only problem with all these bullish signals is the 200 EMA on the daily. So, for now, the 200 EMA is limiting the NZD/USD advance!
But if the 200 EMA is conquered by the NZD bulls, the next target will be 0.6247, which also happens to be the 16th June high. After that, the next resistance zone for the NZD/USD will be the 0.6300 level.
On the contrary, a drop below 0.6200 support will open the gates to more downside for the NZD. In that case, the pair may drop to the 100 EMA on the daily chart currently present near 0.6187. After that, the next stop for the NZD bears will be the 0.6165 level where the 50 EMA is present.
Meanwhile, the NZIER's survey has revealed a slight improvement in business opinion. This report reveals that the demand in New Zealand is weak and the capacity utilization has also declined. In addition, businesses in New Zealand are also finding it difficult to find unskilled workers.