Forex: NZD/USD capped below 9-month highs 0.8360

FXstreet.com (Barcelona) - With Kiwi being strongest currency among the majors since late last week, NZDUSD is currently dealing with 9-month highs ask line around the 0.8350/60, last at 0.8346, a +0.26% higher for the week so far. The pair printed a fresh 2-month high during early NY trade, helped with better risk appetite in stocks as well, though now trading below Friday's highs. Market talk of stops above mentioned highs price zone.

Good economic data for NZ keeps coming out, pointing to a GDP 3Q growth to be released next week of around +0.5%, analysts say, which would make RBNZ not needing to lower the OCR from current 2.5%. All this is also pushing Kiwi against AUD, with AUDNZD quoting around 1-month lows last at 1.2562. "For the NZDUSD, the key level to watch is 0.8360. This level has capped the NZDUSD since March. While speculative 'long' positioning looks increasingly stretched, NZDUSD momentum is positive and NZ-US relativities are still tilted in favour of NZD appreciation," says Currency Strategist at BNZ Mike Jones.

Immediate resistance to the upside for NZDUSD shows at 28 Sept/recent 2-month highs 0.8355, followed by Feb 03 highs at 0.8380, and Feb 15 highs at 0.8421. To the downside, nearest term support lies at Friday's lows 0.8309, followed by Thursday's lows at 0.8282, and Wednesday's lows at 0.8237.