NZD/USD rose further and managed to break above 0.6700 during the American session supported by a weak US dollar across the board. Greenback accelerated the decline in the currency market after the personal income and spending report.
The pair bottomed on Asian hours at 0.6667, hitting the lowest level since March 16 (FED meeting). Then it rebounded toward 0.6700 and recently managed to break higher and climbed to 0.6735. It was trading at 0.6725/28, up 0.60% for the day. The kiwi is outperforming the loonie and the aussie on Monday.
Correction over?
Since Friday 18, when NZD/USD reached a 2-month high at 0.6873, it has been falling constantly, making a bearish correction after the rally. The decline from the highs stopped today above the 20-week moving average that stands at 0.6650/60.
If the bounce to the upside continues and intensifies it could climb first toward 0.6800 and then to test the key resistance area located around 0.6870/80, that since October is capping the kiwi.
(Market News Provided by FXstreet)