NZD/USD bulls testing upper boundaries of the 0.62s on weak US Dollar and hawkish RBNZ

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  • NZD/USD was testing the 0.6270s in a soft US dollar environment. 
  • The RBNZ still have a job on its hands.

NZD/USD is higher into the close of the New York session by some 0.5% after rallying from 0.6211 to test the bear´s commitments near 0.6300 with the price making a high of 0.6294. 

´´The Kiwi held strength attained following yesterday’s Fed decision and starts the day at the upper end of March’s trading ranges, at around 0.6275,´´ analysts at ANZ Bank explained, noting yesterday’s speech by Reserve Bank of New Zealand´s Chief Economist Paul Conway.

´´While he didn’t really say anything new, media reports made it look hawkish, and to be fair, the RBNZ still have a job on their hands. But of course, so do others even if the Fed is possibly wavering. Our forecasts see Kiwi mildly higher, but we remain worried about the imbalances that bears continue to cite,´´ the analysts said. 

Meanwhile, the US Dollar pared earlier losses on Thursday after the US Federal Reserve sounded close to calling time on interest rate hikes. The dollar index, DXY, which measures the currency against six major peers, is trading between 101.95 and 102.65 on the day.