NZD/USD peeps above 0.69
- NZ fin min appoints Adrian Orr as RBNZ chief.
- Orr to take up role on Mar. 27.
- Potential bullish reversal on charts.
The bid tone around the NZD gathered pace after New Zealand's government on Monday appointed pension fund chief Adrian Orr as the new governor of the nation's central bank.
The NZD/USD pair rose to a session high of 0.6906 and was last seen trading at 0.6887 levels.
The new labor government 's plans to add maximizing employment to the central bank's inflation objective. However, it is widely believed that Orr is unlikely to move away dramatically from the inflation target, i.e. the central bank would remain open to tightening the screws if price pressures start building up. Consequently, the NZD gained altitude.
Looking ahead, the spot may find it difficult to cut through the descending 50-day MA of 0.6945 in anticipation of the Fed rate hike on Wednesday. That said, the greenback could be offered on fact (rate hike) post-Fed. Further, a positive close today would confirm a bullish doji reversal.
NZD/USD Technical Levels
A move above 0.6917 (Dec. 6 high) could see the spot test supply around 0.6945 (50-day MA). A close above the same would open doors for a break above 0.71 (psychological levels). On the other hand, a break below 0.6863 (5-day MA) would shift risk in favor of a drop to 0.6816 (Dec. 1 low) and 0.6780 (Nov. 17 low).