NZD/USD – Highest day end close since May 2015

NZD/USD pair closed above 0.73 handle on Wednesday; its highest day end close since May 2015 as the hunt for yield continues to strengthen the Kiwi.

Eyes US data and Jackson Hole

Multiple intraday highs are seen in the range of 0.73-0.7350. Whether pair will clear the same depends on US durable goods data due for release today and more on Yellen’s speech at Jackson Hole tomorrow. Strong data and/or hawkish Yellen could at least temporarily shift yield differential back in favor of the US dollar.

As of now markets believe Yellen is likely to stay neutral, which for markets is as good as being dovish. At the time of writing, the pair was trading around 0.7330 levels.

NZD/USD Technical Levels

Acceptance above 0.7344 (weekly high) would open doors for a rise to 0.7391 (Mar 2015 low) levels. On the lower side, a failure to hold above 0.73 (zero figure) could yield 0.7255 (trend line coming from July 25 low and Aug 8 low).