NZD/USD: 0.7120 and even lower on the cards?

FXStreet (Guatemala) - NZD/USD is currently trading at 0.7506 with a high of 0.7530 and a low of 0.7455.

With the Kiwi, markets are comfortable for now on Wheelers recent forward guidance that rates are on hold for the time being. Today, NZD/USD is consolidated after opening with a bullish gap and steady on the 0.75 handle while Imre Speizer, analyst at Westpac Banking corporation explained that this two-week old bounce in NZD/USD probably has further to run, our multi-week target 0.7600. "Speculators are currently very short the NZD, but there has been little for NZD bears to latch onto."

Meanwhile, we look ahead to the FOMC minutes that are very important this time around as we will hopefully understand the Fed's view in the global economy in relation to the performances of late to that of the US and this could help determine timings of a rate hike from the Fed. Technically, Imre Speizer explained that over the medium term, there remains potential for NZD/USD to fall further. "The next major target is 0.7120, but as long as the US dollar’s uptrend remains intact, even lower is possible."

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