Intraday Market Analysis – NZD bounces higher
NZDUSD holds high ground
The New Zealand dollar rallied after the RBNZ raised its interest rate by 75bp. A break above the September peak of 0.6150 has strengthened the case for an extended rally. The pair is consolidating its recent gains and the bulls may look to increase their exposure, with bids shown up over 0.6060. 0.5980 would be a second line of defence in case of further hesitation. On the upside, a close above 0.6200 could release the energy and send the kiwi to 0.6310. But before that, the RSI may need to cool a little bit.
USDCAD struggles to bounce back
The Canadian dollar treads water as retail sales saw a contraction in September. After the price stabilised at mid-September’s lows around 1.3230, buyers have started to make their way back to the auction. However, the psychological level of 1.3500 has capped the latest advance and the convalescent bulls may need to secure their foothold first. 1.3300 is the first support to monitor and 1.3230 a critical floor to keep the greenback afloat. A bullish breakout could trigger a 200-pip rally towards 1.3700.
AUDUSD seeks support
The Australian dollar consolidates as traders await the Fed minutes later today. The recovery has lost steam in the demand-turned-supply area (0.6800) from last September. Profit-taking triggered by a drop below 0.6680 and fresh selling from medium-term traders weigh on the intraday mood. The aussie is probing for support over 0.6580 and a break above 0.6730 could put the pair back on track, potentially triggering a runaway rally above 0.6850. However, a deeper correction could send the exchange rate to 0.6450.