Overview:
NZD/USD is trading with positive bias. The rate is underpinned by stronger-than-expected 1.5% on-quarter growth in New Zealand 4Q GDP (vs +0.9% forecast); Kiwi demand on softer AUD/NZD cross after NZ GDP data; positive risk sentiment; NZD-USD yield gap. But NZD/USD gains tempered by New Zealand Finance Minister Bill English's comment that the drought that has engulfed the entire North Island means a "bit less pressure" for tighter policy. Data focus: 02:00 GMT New Zealand February credit card statistics. Daily chart is mixed as MACD is in bullish mode, but stochastics is neutral.
Recommendation:
Buy above 0.829 with upside targets at 0.835 and 0.8365.
Resistance levels:
R1 - 0.8349-0.8353 (March 6 high-Feb. 26 high)
R2 - 0.8385
R3 - 0.8417 (Feb. 25 high)
Alternative scenario:
Sell below 0.829 with downside targets at 0.827 and 0.8235.
Support levels:
S1 - 0.826
S2 - 0.823
S3 - 0.8207 (Wednesday's low)