NZD/USD: bulls back on Wheeler's comments "Don't need rapid easing"

NZD/USD is currently on the bid and remains in an extension of the recovery from 0.7213. 

RBNZ's Wheeler: Don't need rapid easing

We have reached early highs in Asia on the back of Central Bank rhetoric and the market's fixation on rates while RNBZ's Wheeler has explained that there is no hurry to cut, despite the bird being too high. The main concern is that rapid rate cuts would result in unsustainable growth and could be problematic to the housing market. 

Meanwhile, with a market fixated on rates, the analyst at Westpac offered their daily outlook as follows:

Analysts at Westpac offered an indication of their views for NZ swap yields 1 day: NZ 2yr swap rates should open 2bp lower at 1.98%, while the 10yr should open 3bp lower at 2.44%.

NZ swap yields 1-3 month: Slightly lower. The OCR is likely to be cut to 1.75% in November. That should result in a 2yr swap rate of around 1.90%, although the risk is it could be lower if markets expect a 1.5% terminal OCR."

NZD/USD levels

With spot trading at 0.7289, we can see next resistance ahead at 0.7296 (Yesterday's High), 0.7298 (Daily Classic R1), 0.7307 (Annual High), 0.7307 (YTD High) and 0.7324 (Daily Classic R2). Support below can be found at 0.7288 (Monthly High), 0.7288 (Weekly High), 0.7270 (Daily Classic PP), 0.7269 (Daily Open) and 0.7267 (Daily Low). Looking to candlestick patterns, we can see a Piercing Line and Engulfing Bullish formation on the 1-hour chart and a Doji formation on the 4-hour chart.