New Zealand Dollar surges sharply after hawkish RBNZ holds, which hints at another rate hike in Q2 next year.
From a technical standpoint, NZD/USD’s rally from 0.5771 accelerates to as high as 0.6206 so far today. The development strengthen the case that whole corrective fall from 0.6537 (Feb high), has completed with three waves down to 0.5771 (Oct low).
Near term outlook will stay bullish as long as 0.6078 support holds. Next target is trend line resistance at around 0.6300. Sustained break there would pave the way through 0.6537 to resume the rise from 0.5511 (2022 low).
In gauging Kiwi’s strength, AUD/NZD is always a reference. Today’s sharp decline suggests that fall from 1.0942 is in progress. Near term outlook remains bearish as long as 1.0859 resistance holds, next target is 1.0620 support.
More importantly, it’s possible that the triangle consolidation pattern from 1.0469 (2022 low) has completed at 1.0942. Firm break of 1.0620 will argue that whole fall from 1.1489 (2022 high) is ready to resume through 1.0469 in the medium term.
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