NZD/USD rises sharply after the hawkish RBNZ hold today. Break of 0.6139 confirms resumption of rally from 0.5873. Further rise is now expected as long as 0.6086 support holds. Next near term target is 0.6215 resistance.
Current development also affirms the view that NZD/USD’s corrective fall from 0.6368 has completed with three waves down to 0.5870. Decisive break of 0.6215 should pave the way through 0.6368 to resume the rise from 0.5771 (2023 low).
AUD/NZD dives in tandem with broad based Kiwi strength. Immediate focus is now on 1.0852 cluster support (38.2% retracement of 1.0567 to 1.1027 at 1.0851). Sustained break there should confirm that whole rise from 1.0567 has completed. Decline from 1.1027 is another falling leg in the medium term range pattern from 1.1085, and should target 61.8% retracement at 1.0743 and below. This will remain the favored case as long as 1.0941 resistance holds.
