- Government urges RBNZ to consider housing as part of its mandate.
- NZD/USD above 2019 highs.
- The long-term trend remains in favour of bulls.
The New Zealand Dollar continues to gain after government officials asked the central bank to consider housing prices while formulating monetary policies.
The comments effectively put a lid on further rate cuts and triggered buying in the New Zealand dollar as traders sense more upside in the short-term.
In the US, the Dow Jones Industrial Average trades below 30,000 level after starting the week on a bullish note. Nevertheless, the chances of a change in sentiment are relatively short, and the current pullback might be a brief pause before further upward moves.
Asia-Pacific might follow a sedate tone today as the US markets are closed on account of Thanksgiving holidays. Also, the economic docket is light today, and unless some surprising developments happen the trading volumes will not be heavy.
NZD/ USD is all set to break-out of the Rising Wedge pattern formed from the March lows. A successful move past this bearish formation could help the pair in moving further higher. The pair went above 2019 high earlier this week and is currently above the wedge’s top-ceiling. A retracement here to 2019 high will not scuttle the bullish case as the long-term trend remains in favour of bulls.
At the time of writing, one New Zealand dollar buys 0.6998 US dollars, slightly down -0.09% as of 9:27 AM UTC.