• NZD/USD is pulling up into the 0.6200 area and testing channel resistance. 
• NZD/USD bears are lurking near a 61.8% Fibonacci. 

NZD/USD rallied on Tuesday and reached up to test 0.62 the figure before meeting strong opposition from the bear in the later part of the day on Wall Street. At the time of writing, NZD/USD is trading at 0.6180, slightly off the 0.6207 highs but well up from the lows of the day down at 0.6132. 

''The move was reasonably unique to the Kiwi; unlike on many other occasions, it wasn’t a USD move,'' analysts at ANZ Bank said. ''That’s seen the Kiwi outperform on crosses, notably against the AUD, as below. There wasn’t a clear catalyst, but as each day passes, the weight of evidence on the side of the Reserve Bank of New Zealand having to do more seems to grow,'' the analysts added.  

''The jobs market doesn’t seem to be cooling. The 3-way tussle we spoke of yesterday (between those citing rebuild activity, those concerned about the disruption to exports and impact on Crown finances, and those expecting a USD rebound) is also at front of mind, and that’s suggestive of volatility.''

As for the US Dollar, despite some cooler data over the last couple of key releases, it remains bid with the US rate futures that have priced in a peak fed funds rate of 5.4% hitting in September supporting the bid. The market has all but priced out rate cuts this year. Consequently, the US Dollar index, DXY, which measures the currency against a basket of major currencies, was higher by  0.18% in late morning trade on Wall Street and set for a February gain of over 2.5%, its first monthly increase since September.

NZD/USD technical analysis

Meanwhile, NZD/USD is still eyeing up 0.6200 in the current bull correction:

The 61.8% Fibonacci is eyed as a key resistance near where horizontal meets channel resistance.