The New Zealand dollar surged as Q2’s unemployment rate dropped to 4%.
The Kiwi has met strong buying interest at 0.6900 and the sideways action suggests that the sell-off has faded. Though the bulls will need to lift several levels of resistance before they could break the market’s indecision.
A higher low at 0.6980 is a sign that buyers are willing to commit, narrowing down the trading range in the process. 0.7105 would be a tough nut to crack but a breach could trigger a runaway rally as the short side seeks to unwind.