Fresh highs
NZD/USD is at the best levels of the day ahead of trade balance numbers to come at 2145 GMT (4:45 pm ET).
The kiwi has been solid since yesterday's strong Q3 retail sales report. Excluding inflation, sales rose 1.6%, far above the 0.5% expected.
Despite the huge beat, the reaction has been tepid but NZD/USD just touched the highest since Thursday, breaking above 0.6430 and hitting some minor buy-stops.
The latest rally brings the Nov 21 high of 0.6437 into focus.
I think the more-interesting trade is the long-term one. If the global economy picks up and the trade war is resolved (temporarily), then NZD/USD is a great place to be. The pair could be forming a double bottom and even if it isn't, the technical set-up presents an intriguing risk-reward with stops below the 2015 low.
Weekly chart:
