The US dollar is higher across the board, but these moves may not mean much until the Fed meeting later today. The market could slow until their policy decisions regarding the monetary policy are out.
Still, the key is by how much will the Fed scale down its bond-buying program. If it isn't a lot, then the US dollar may hit resistance despite some recovery. If that's the case, then we think that commodity currencies can stay strong.
I still believe that NZD/USD can do well in upcoming sessions, especially after New Zealand unemployment fell 0.5%, down to 3.4%. From an Elliott wave perspective, we see a nice three-wave setback from the highs. Ideally, it's a correction that can cause a new bounce by the end of the week.
Outlook
NZD/USD made a strong recovery in the 4-hour chart, an impulsive move after we noticed a completion of a significant and complex W-X-Y corrective decline at 0.6854. Therefore, it seems like a new five-wave bullish cycle is now in progress that can send the price even higher once the current corrective consolidation within wave four entirely unfolds. Ideal support is here around 0.7100 level.