NZD/USD: bulls still in charge above 0.7220 despite GDP miss

Currently, NZD/USD is trading at 0.7252, down -0.23% on the day, having posted a daily high at 0.7273 and low at 0.7237.

A dovish hike? - ANZ

NZD/USD has dropped on the back of the March quarter economic growth data that came in from New Zealand at 0.5% q/q vs the expected 0.7% q/q and prior 0.4%. For year on year, this arrived at 2.5% vs the expected 2.7% y/y and prior 2.7%. This comes in stark contrast to support NZD has been receiving on the back of a strong economy. However, the RBNZ was not expected to act anytime soon and the downside in the Kiwi is limited on this. More focus turns to the US and inflation, where markets will be second guessing the FOMC's next announcements. Yellen was stubborn with her optimism in today's presser and that supported the greenback that was otherwise trading in the low 96's on DXY. 

NZD/USD levels

The bird broke the stubborn 0.7220's level and rallied to 0.7318 highs o/n. The dollar bounced back and took the board down with it but if the Kiwi can manage a close on the 0.72 handle, despite this release, the bulls will remain in control targeting the same highs with first resistance at 0.7280. To the downside, 0.7145 and a break back below 0.7080/90 are key near-term downside areas. On the wide, the 0.7375 YTD highs are a key target to the upside and to the downside, a break below 0.7080/00 opens 0.6970.