NZD/USD is on a tear, trades at one-month high

The NZD/USD is trading at the highest level since December 14 on the back of a broad based US dollar sell-off and an upbeat GDT price auction.

Hovers around 0.72 handle

The spot was last seen trading around 0.72 handle. The pair clocked a high of 0.7220 in the overnight trade.

The USD sell-off gathered pace after Trump expressed concerns regarding the strength in the US dollar. Similar concerns were expressed by Anthony Scaramucci, a senior member of Trump’s economic advisory council, while speaking at the Davos Economic Forum.

Meanwhile, average prices climbed 0.6% at the Global Dairy Trade auction, which offered relief following a 3.9% drop in the previous auction and strengthened the bid tone around the Kiwi.

The pair could remain solidly bid ahead of the US CPI release and Yellen speech as the unwinding of the Trump trade appears to have gathered pace.

NZD/USD Technical Levels

A break above 0.8239 (Dec 14 high) would open the doors to 0.7260 (resistance offered by the rising trend line drawn from Jan 2016 low and May 2016 low) and then to 0.73 (zero levels). On the other hand, a breakdown of support at 0.7189 (Dec 9 high) would expose 0.7150 (100-DMA), under which the losses could be extended to 0.71 (zero levels).