NZD Buoyed by RBNZ’s Promise of Rate Increase
The NZD/USD pair soared above 0.7300 after the Reserve Bank of New Zealand (RBNZ) spoke about a possible rate increase in September 2022, enabled by the revival of the local economy.
The RBNZ’s hawkish outlook benefited the NZD bulls, and the currency’s price demonstrated a significant technical breakout on the daily sticks. The NZD confirmed a symmetrical triangle breakout on the daily chart, after having spectacularly overcome the sloping trendline resistance at 0.7238 on a sustained basis.
As of writing, the NZD/USD pair is trading near 0.7310, at the highest level in three-month, up 1.05% on the day.
The Relative Strength Index (RSI) is holding above the midline. Investors are advised to watch the overbought territory and to be mindful of the 0.7350 psychological levels that might be tested by the pair.
On a flip side, if NZD/USD retreats, it will test the triangle resistance, below which the 21-day moving average (DMA) at 0.7219 will act as a strong cap. Overall, the pair is set on a rising trajectory.
NZD/USD traded at 0.7228 in the early morning. The pair was last seen trading at 0.7304. A change in price on the day so far is 1.00%.