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  • The kiwi found support amid risk appetite, but remains in range.
  • NZD/USD with modest bullish bias, needs to consolidate above 0.6700.

The NZD/USD dropped earlier on Wednesday approaching 0.6600 but then it bounced, affected by the results of the US election. The driver on Wednesday is the US dollar more than risk appetite. Equity prices in Wall Street are rising sharply, but commodity currencies only modestly.

The short-term bias in NZD/SUD points slightly to the upside as it continues to be supported by a trend line and also by the 100-day moving average around the 0.6610 area. A consolidation below 0.6600 should lead to more losses, targeting 0.6500, with interim support at 0.6560.

The kiwi needs to break the 0.6720 resistance area and hold firm above in order to clear the way to more gains and to potentially test the September top near 0.6800, the next key barrier.

NZD/USD daily chart