NZD/USD: can bulls break up to the key 0.72 handle?

NZD/USD stuck in a consolidation below key 0.72 handle.
RBNZ firmly on hold, instead looking to US for a catalyst.

Currently, NZD/USD is trading at 0.7173, down -0.06% on the day, having posted a daily high at 0.7180 and low at 0.7168. The bird retains upward momentum, although the 0.7190-0.7200 area is a minor obstacle for now as analysts at Westpac noted.

NZD/USD 1-3 month:

"If the RBNZ remains firmly on hold, as we expect, and the US dollar rises on the expectation of further Fed interest rate rises in 2018, then NZD/USD should fall to 0.67 over the next few months," explained the analysts at Westpac for a longer term outlook.

Forex today: mixed Fed chat, dollar higher and equities/ rates up

Meanwhile, the data is thin this week on a domestic basis for the bird, instead, traders will look to China's data for a catalyst, but the US has a number of key releases to accompany the recent Fed speak that has been so far mixed. Fed's Williams, he said price-level targeting has benefits while painting a benign picture of Fed rate hikes, albeit highlighting the strength of the U.S. economy. Then, Fed's Bostic said that the Fed should be cautious if yield curve continues to flatten while arguing that three rate hikes in 2018 may be too much.

NZD/USD levels

NZD/USD is stuck between hourly MA's in a consolidation above the 4-hr 10 and 21 smas. On the daily outlook, the price remains in a bullish phase in the extension of the 11th Dec rally from the 0.6830's. RSI remains above 70 on the same time frame while momentum leans bullishly as well. 0.7200 is first resistance as being the 15th Oct high. A break and close below 0.7080 opens 0.7030 sideways channel tops.

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