NZD/USD

Speculative Expectations: With tonight's release of gross domestic product figures, traders are capitalizing on current speculation that output will rise in the New Zealand economy for the quarter.  Although quarterly expansion looks to be hovering the 0.7-0.8 percent range, the overall annual comparison looked to have slowed from the previous 2.5 percent print in March and considerably lower than the year ago period at a lofty 5.8 percent rise.  With that said, high interest rates and rising energy prices look to keep growth in check with lower consumption expected in the near term future.  Nonetheless, optimism still shines on another potential rate increase as inflation tends to heat up with higher rates of growth.

In Light Of Rising: The rise is contrary to the positive data that was witnessed in the world's largest economy.  Released earlier, durable goods orders soared 3.3 percent in the month and confirms  earlier hawkish statements by Federal Reserve policy officials.  However, even with a tightening bias, rates in the New Zealand economy are still at record highs.

Technically Speaking: A nice break above the 23.6 percent fib from the intraday move looks to be adding to current bullish momentum.  However, notably, stochastic is showing a death cross in overextended territory and may be suggesting a slight retracement before further gains can be made.  First test to the upside looks to be the 38.2 percent Fibonacci at 0.6907.

NZD/JPY

Further The Carry Trade: Similar to the NZDUSD, traders speculating on tonight's figures are underpinning current strength in the cross.  Additionally, carry trade notions are propping up interest as speculation continues of a potential rate increase, albeit small in probability, as the economy looks to be expanding further.  Additionally, as mentioned earlier in the year, nothing beats the currently enormous interest rate differential between the two denominations.

In Light Of Growing Business Confidence: Small business confidence in the world's second largest economy rose significantly in the month.  Usually printing under a 50 reading, the Shoko Chukin Bank's index of confidence rose above the 50 level, considered the reference for growth and expansion.  Confidence rose among retailers, construction companies and other non-manufacturers.  Now with both business and consumer confidence higher, further growth and expansion through increased spending may not be far behind.

Technically Speaking: Rising in a pretty even channel, the cross looks to rise with a first test at the 78.50 figure.  Confirming the move higher would be a tick above the 20 reference in the stochastic oscillator.  However, with the reading in overextension, entries may have to wait momentarily.

USD/CAD

Crude Oil Rises: Dollar buying was strong in the early morning hours on U.S. corporate repatriation and short covering by medium term speculative positioning.  However, with crude oil on the rise again, Loonie bulls reentered the foray and pushed the currency pair lower.  An EIA report earlier today stated stockpiles rose on waning consumption and strong imports.  However, with the U.S. government releasing expectations that 15 percent of the nation's refineries could stay shut for weeks, contracts rose on the New York Mercantile Exchange.  WTI crude settled $1.28 higher at $66.35.

Technically Speaking: The underlying currency looks to be hovering the bottomside support of the intraday channel.  With stochastic in overextension, a rise in the spot price would not be ruled out at this point.  However, a confirmed rise would be first needed before any entry considerations.  Second test to the downside would be 1.1700 should the spot break below.

Richard Lee is a Currency Strategist at FXCM.