NZD/USD Resumes Up-Move, Retesting 50-DMA at 0.6840
Following a brief pause on Thursday, the NZD/USD pair is extending its up-move on Friday to currently trade close to immediate resistance at 50-day SMA near 0.6840 region.
The pair on Thursday dipped back below 0.6800 handle, shrugging-off strong Global Dairy Trade Price Index as global risk-off sentiment was seen hurting commodity-linked currencies including the kiwi. The pair was also dragged down by renewed buying interest in the greenback, which was led by broadly in-line with expected prints from the ADP report and weekly jobless claims. The ADP report showed US economy adding 173k new private-sector jobs during the month of May, while weekly jobless claims dropped by 1,000 to 267,000.
On Friday, the pair extended its near-term recovery from a two-month low of 0.6675 (the vicinity of 200-day SMA) touched earlier during the week. The pair subsequently surpassed 100-day SMA with ease and currently seems to make an attempt to break above 50-day SMA resistance.
Traders focus would remains on the much awaited and talked about US NFP data, due later during the NA session, which is likely to have a direct impact on next week's Fed monetary policy meeting.
Technical levels to watch
Momentum above 50-day SMA strong resistance (0.6840) seems to boost the pair immediately towards reclaiming 0.6900 handle and head towards testing 0.6920 horizontal resistance. On the flip side, 0.6800 round figure mark now turns immediate resistance, which if broken could easily drag the pair back towards 0.6770 support region. On a sustained weakness below 0.6770 support, the pair could immediately slide to a strong horizontal support near 0.6735.
