The New Zealand dollar was well prepared for the Fed decision: recent data was positive and so were flows of money into real estate in the small country. When the FOMC announced the NO taper surprise, the New Zealand dollar jumped higher and didn’t really look back. NZD/USD is over 600 pips above the lows seen early in month. Is it time for consolidation? Or can the year to date high of 0.8676 be challenged soon? Update. [do action=”autoupdate” tag=”NZDUSDUpdate”/]The daily chart of NZD/USD looks a bit one sided at the moment: Taper boost to an already strong NZD The New Zealand dollar is a “risk currency”: when investors seek a higher yield, the kiwi is one of the options. While the interest rate is relatively low in historic terms for New Zealand, only 2.5%, this is higher than the near zero levels in many developed countries. And, the money doesn’t necessarily go into government bonds, but to real estate. A high level of QE in the US means more dollars printed looking for investments, and Auckland’s homes seem to be a good option for quite a few investors. The RBNZ, New Zealand’s central bank, tries to talk down the value of the kiwi at every opportunity, but this doesn’t always work. Macro prudential tools are considered to tackle the housing market. In addition to QE tapering, the kiwi received a relatively positive GDP report: while the economy grew by only 0.2% in Q2, as expected, the YoY growth rate exceeded expectations with a rise of 2.5%. This was thanks to an upwards revision of Q1 growth from 0.3% to 0.4%. All this led the kiwi to stronger levels. NZD/USD technicals The pair already broke above strong resistance of 0.8163 before the FOMC decision and managed to break above 0.812, which was only a minor line. After the shock, it croseed 0.8280 and also 0.8350, which was a strong line of support in March and April. The pair reached a high of 0.8435 before retreating. So now, important resistance awaits at 0.8450, which capped the pair around the turn of the year. Further resistance appears at 0.8533, a peak in February. The highs of April: 0.8580 work as the last line of support before the peak of 0.8676. Can the kiwi make it? Upcoming Events Events are in New Zealand. All times are GMT September 24th, 22:45: Trade Balance 26th, 1:00: ANZ Business Confidence 29th, 21:45: Building Consents. October 2nd, 00:00 ANZ Commodity Prices 7th, 21:00: NZIER Business Confidence 9th, 21:00: Business NZ Manufacturing Index 10th, 21:45 Food Price Index 15th, 21:45 Quarterly CPI 18th, 2:00: Credit Card Spending 20th, 21:45 Visitor Arrivals 25th, 00:00: ANZ Business Confidence 28th, 21:45: Trade Balance 30th, 20:00: Rate decision, with accompanying statement. * Note to readers: due to more and more requests, I will try to update the NZD/USD outlook section. However, the frequency may not be a weekly one. Thanks. Further reading: Further kiwi strength Yohay Elam Yohay Elam Yohay Elam: Founder, Writer and Editor I have been into forex trading for over 5 years, and I share the experience that I have and the knowledge that I've accumulated. After taking a short course about forex. Like many forex traders, I've earned a significant share of my knowledge the hard way. Macroeconomics, the impact of news on the ever-moving currency markets and trading psychology have always fascinated me. Before founding Forex Crunch, I've worked as a programmer in various hi-tech companies. I have a B. Sc. in Computer Science from Ben Gurion University. Given this background, forex software has a relatively bigger share in the posts. Yohay's Google Profile View All Post By Yohay Elam MinorsNZD/USD Forecast share Read Next Fed’s tapering decision should support risk currencies for a Justin Pugsley 9 years The New Zealand dollar was well prepared for the Fed decision: recent data was positive and so were flows of money into real estate in the small country. When the FOMC announced the NO taper surprise, the New Zealand dollar jumped higher and didn't really look back. NZD/USD is over 600 pips above the lows seen early in month. Is it time for consolidation? Or can the year to date high of 0.8676 be challenged soon? Update. [do action="autoupdate" tag="NZDUSDUpdate"/] The daily chart of NZD/USD looks a bit one sided at the moment: Taper boost to an already strong NZD… Regulated Forex Brokers All Brokers Sponsored Brokers Broker Benefits Min Deposit Score Visit Broker 1 $100T&Cs Apply 0% Commission and No stamp DutyRegulated by US,UK & International StockCopy Successfull Traders 9.8 Visit Site FreeBets Reviews$100Your capital is at risk.2 T&Cs Apply 9.8 Visit Site FreeBets Reviews$100Your capital is at risk.3 Recommended Broker $100T&Cs Apply No deposit or withdrawal feesTrade major forex pairs such as EUR/USD with leverage up to 30:1 and tight spreads of 0.9 pips Low $100 minimum deposit to open a trading account 9 Visit Site FreeBets ReviewsYour capital is at risk.4 T&Cs Apply Visit Site FreeBets ReviewsYour capital is at risk.5 Recommended Broker $0T&Cs Apply Trade gold, silver, and platinum directly against major currenciesUp to 1:500 leverage for forex trading24/5 customer service by phone and email 9 Visit Site FreeBets ReviewsYour capital is at risk.