- NZD/USD challenges high of the year
- Ascending triangle breakout
Since the start of 2020, the New Zealand dollar has been depreciating against the U.S. dollar, trading to as low as 55 U.S. cents during mid-March. Ever since then, NZD/USD has been recovering steadily.
On Tuesday, NZD/USD rallied and broke out of an ascending triangle after the weakening of USD due to the escalation of political tension between the U.S. and China over the accusation of espionage of two Chinese nationals.
At the time of writing, NZD/USD is moving towards this year’s high of 0.6730. It is likely that the recent rally will slow down unless there is a strong fundamental reason to either strengthen NZD or weaken USD, thus creating a new high for the year. Also, NZD/USD will have to break above the 0.67 handle. For the time being, the next scheduled high impact news that could possibly give NZD/USD a push will be the interest rate decision by the Federal Reserve on 30 July.