NZD/USD keeps rising, eyes 0.7000

NZD/USD broke above 0.6965 and climbed to 0.6982 during the American session reaching the strongest level in five weeks. Price remains near the highs, holding a bullish tone.

NZD/USD sharp bounce

The pair reached levels under 0.6900 during the Asian session but then reversed dramatically, breaking above Friday and Monday’s highs and ended a bearish correction. NZD/USD resumed the upside and now it has risen almost 300 pips since May 31.

If the rally continues the pair would face two important resistance. Initially the 0.7000 area, that holds a psychological relevance and above here the 0.7050/55 area, where April and May highs are located; a break above 0.7055 would put the pair at the strongest level in almost a year.

Central Bank on focus

Tomorrow after the end of the American session the Reserve Bank of New Zealand will announce its decision on monetary policy and next week will be the turn of the Federal Reserve.

Earlier today, the Reserve Bank of Australia, left interest rates unchanged and signaled that there won’t be a cut anytime soon, triggering a rally of the aussie in the market, that pushed AUD/NZD to rally. Since the European session AUD/NZD pulled back more than 50 pips and is trading now at 1.0675/80.