The kiwi climbed to the highest level since August 2011 on Friday after China’s premier Li Keqiang said policymakers are prepared to do more to shore up the cooling economy.
The New Zealand dollar remained supported after data released earlier in the week showed that New Zealand’s trade surplus rose sharply in February.
The kiwi received an additional boost after Reserve Bank Deputy Governor Grant Spencer indicated that the bank could remove measures to cool the housing market, which would allow inflation to rise.
Weekly bias remains on the upside as RSI, Stochastic, MACD and Moving Averages on the Daily charts shows bullish continuation. However a Pin bar candle stick formation was seen at the end of Friday’s trading session which suggests that a decent retracement should be expected early in the week.
A break of 0.89653 resistance should bring further demand to 0.88453 resistance (July 31,2011 high). However a break of 0.86463 support should bring further supply to 0.85865 supports. I recommend looking for buying trading opportunity on the dips on demand zones.
Key Economic indicator to watch out for in the week is USD Non-Farm Employment Change/Unemployment Rate.