The Kiwi pair has been edges higher on today Asian session upon the sentiment mood of US Dollar and Upbeat Chinese trade data.  U.S. Dollar find support rather than inflation data, investors are on the verge of whether the figures could provide traces of tapping and interest rate hikes. The dollar is driven by U.S. rate expectations, and it rose almost 2% since the Federal Reserve surprised markets – and removed major challenges over the dollar’s ground – by forecasting a rate hike sooner than expected in 2023. Data securities are also proliferating as investors see cracks in the recovery, and are taking the worst change from the central bank to the fact that it is likely to act fast enough to keep inflation low.

Meanwhile Kiwi gained post upbeat Chinese trade surplus data, which showed the pace of economic recovery in Asia-pacific’s largest economic power. The trade surplus came at USD 51.53 billion in June, much higher than the market consensus of USD 44.2 billion. Finance Minister Grant Robertson says the Government is keen to open up quarantine-free travel bubbles with other countries as vaccination rates rise. New Zealand has travel bubbles with Australia and the Cook Islands that are intended to allow for quarantine-free two-way travel, although the Australian bubble has been fraught with pauses.

New Zealand house prices continued to rocket higher in June despite central bank and government measures intended to cool property speculation. “The median national sales price of 820,000 New Zealand dollars ($573,000) was nearly 29% higher than a year earlier”, the Real Estate Institute said Tuesday. “An increase in home construction should boost supply of new properties, though builders are struggling to find the workers needed to keep the building boom going”, Mr. Couchman said.

Meanwhile investors are looking forward to the Reserve Bank New Zealand’s (RBNZ’s) interest rate decision, after Personal & Business Banking in New Zealand (ASB), Westpac and Bank of New Zealand (BNZ) economist projected the date in the previous week when the RBNZ  is expected to rise the official cash rate (OCR). For the Dollar Fed Chair Jerome Powell’s testimony at Congress from Wednesday will be closely watched for his response to the inflation figures and his tone on the recovery’s progress.

NZD/USD 4 Hour Chart:

Support: 0.6951 (S1), 0.6919 (S2), 0.6891 (S3).

Resistance: 0.7012 (R1), 0.7040 (R2), 0.7072 (R3).

Amid the overall circumstances play a major role in placing the Kiwi in upbeat moment. We expect bullish trend for NZD/USD.