The NZD/USD has strengthened overnight to trade at 0.7420 this morning. There was little to provide the currency with direction during the day yesterday in the absence of local data releases. However overnight, as the USD consolidated last week’s gain, the NZD pushed higher along with its “commodity-linked” peers (see Majors). From 0.7340 the NZD/USD has traded up to 0.7420. Resistance is eyed at this month’s highs around 0.7450. Support will likely be encountered on any dip toward 0.7350. With a relatively low-key week for NZ data releases, global developments will likely remain the key driver of the NZD this week.
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