NZD/USD catches a bid on better than expected GDP Q3

Currently, NZD/USD is trading at 0.6902, down -0.02% on the day, having posted a daily high at 0.6925 and low at 0.6893.

New Zealand just released its  Q3 GDP that arrived as an impressive (relative to Australia's contraction in Q3) 1.1% q/q vrs the expected 0.8%, and prior 0.9%). The bird was bid on the release and rallied from 0.6884 to 0.6913.

Meanwhile, overall momentum remains negative, as noted by analysts at Westpac, who said this is all thanks to the post-FOMC surge in the US dollar’s last week, with the next major multi-day target around the 0.6800 area. "Chartists will note the bearish neckline at 0.6975."

NZD/USD 1-3 month:  

"Lower to at least 0.6800," added the analysts as Westpac,  "The US dollar has had an impressive rise since the US election and has potential to rise further during the months ahead. The Fed’s assertive tightening projections plus US fiscal expansion should maintain upside pressure on US interest rates and the US dollar. Against that, the NZ economy is strong and dairy prices have risen, but these forces are subservient to the US dollar’s trend."

NZD/USD levels

With spot trading at 0.6905, we can see next resistance ahead at 0.6905 (Monthly Low), 0.6905 (Weekly Low), 0.6905 (Daily Open), 0.6912 (Daily Classic PP) and 0.6915 (Hourly 20 EMA).

Support below can be found at 0.6897 (Yesterday's Low), 0.6893 (Daily Low), 0.6888 (Daily Classic S1), 0.6858 (Daily Classic S2) and 0.6845 (Weekly Classic S1).