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NZ Consumer Sentiment Hits 9-Year High - NZD/USD Tests Triangle Resistance

New Zealand's Consumer Sentiment for Q1 of 2014 came in at 121.7, reaching the index's highest since Q1 of 2005, when it was 126.7. 


(NZ Westpac Consumer Sentiment March 2005 - March 2014)

Consumers are expecting good economic conditions in the next year. Westpact Chief Economist Dominick Stephens commented:

"Clearly there is now a consensus out there that the combination of a construction boom and export prices at multi-decade highs is a sweet spot for the New Zealand economy."

The good sentiment coincides with a recent rally in the NZD/USD that has now brought the pair to a triangle that has been forming for over 3 years now. 


(NZD/USD weekly chart)

The weekly chart shows the pair hitting the triangle resistance, as well as a resistance area around 0.86 going back to Aug. 2011. 

Remember last week, the RBNZ hiked the key interest rate, OCR from 2.50% to 2.75%. This are very bullish for NZD/USD, so at least wait for one bearish week from the Kiwi before respecting the noted resistance factors. I believe more respect should be given the bullish momentum, especially since it came on the back of a rate hike expectation that materialized.