The NZD/USD currency pair continued with the upward trend witnessed on Monday during Tuesday’s trading session. The bullish run led to the pair hitting levels above its 100-day SMA, which is a crucial support point.
The currency pair hit the 0.7230 level, its highest level since November 10. This is despite the release of manufacturing data by the Reserve Bank of New Zealand that showed weak sales and volumes in the manufacturing sector.
The manufacturing report released today indicated that the sector had missed expected targets as manufacturing volumes had risen by 2.1 percent, which was lower than the expected 2.2 percent. Manufacturing sales increased by 0.4 percent instead of the expected 1.8 percent.
The US dollar has been losing ground according to the US Dollar Index, allowing the New Zealand dollar to gain ground over the greenback due to the higher oil prices. The market’s risk appetite is also quite high, which has led many investors to back the Kiwi.
The FOMC meeting scheduled for Wednesday will largely impact the future direction of the currency pair. The FOMC is set to announce a hike in interest rates, which might propel the greenback to regain some of the ground it has lost.
The currency opened trading at 0.7186 and hit highs of 0.7230 before losing some ground to trade at 0.7210 as at 15:37 GMT.
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