The New Zealand Dollar continues to strengthen after reports that the RBNZ could start to include housing prices in its remit on the back of a government recommendation. The comments limit the chances of further rate cuts, boosting the Kiwi.
US stocks eased today after a strong start to the week. The Dow Jones Industrial Average dipped back from the recently struck 30,000 level. The pause in momentum appears to be a bout of profit taking rather than a shift in sentiment.
Thursday’s Asian Session Outlook
Trading in the Asian session could reflect the calmer tone from Wall Street as U.S. markets prepare to close for the Thanksgiving holiday. The economic calendar is also light. As a result, low volumes could be on the cards.
NZD/ USD is close to breaking out of a Rising Wedge pattern from the March Covid lows. This is a bearish formation, so breaking out of it could point to further upside. Earlier in the week the Kiwi broke above the 2019 high. A fallback to the 2019 high, however, could still leave bulls in control.