NZD/USD looking for a break of the 0.7350 for a look in at 0.7500

Currently, NZD/USD is trading at 0.7320, up 0.02% on the day, having posted a daily high at 0.7326 and low at 0.7318.

Wall Street adds to the universal risk-off play

NZD/USD has remained a top performer, lapping up the losses on Wall Street and universal stocks while global yields drop as investors look for safer havens in government debt. Investors are disillusioned by the failings of the Trump administration and with the Trump trade dwindling as we progress through the first 100 days of his presidency, be it only 17 or so days into him at the helm. 

We are monitoring developments in the US economy to that of the antipodeans and the divergence between the Central Banks. The RBNZ is coming up, although analysts at Westpac believe that the RBNZ ended its easing cycle on 10 Nov and will remain on hold for a long time.

NZD/USD levels: The analysts at Westpac offered an outlook for the kiwi noting key levels to the upside.

NZD/USD 1 day: 

"Retains upward momentum but the 0.7350 area looks like a cap for now."

NZD/USD 1-3 month:  

"The month ahead could see NZD/USD extending beyond 0.7500 (Sep high) if the US dollar continues to register disappointment in the Trump Administration’s policies. Further ahead, though, the Fed’s tightening cycle plus US fiscal expansion should maintain upside pressure on US interest rates and the US dollar, pushing NZD/USD lower to 0.7000. Granted, the NZ economy is strong and dairy prices have risen, but these forces are subservient to the US dollar’s trend. (1 Feb)"