NZD/USD: Bearish Gap Closed, Upbeat NZ CPI Supports
Having closed the bearish opening gap, the NZD/USD pair is seen struggling to extend further into the green territory, as oil sell-off continues to crush risk appetite.
NZD/USD: a dip to 0.6847 lows almost reversed
Currently, the NZD/USD pair trades 0.05% higher at 0.6913, flirting with daily highs reached at 0.6930 post-NZ CPI. The Kiwi reversed losses and now peeks into the green zone, with the bulls striving hard to take out upbeat NZ CPI-induced daily tops as the ongoing weakness surrounding the oil prices continue to cap the upside in the prices. Oil prices came under heavy selling pressure after a failure to reach a deal on output freeze by major oil producers at their meeting in Doha on Sunday dampened the market sentiment.
Earlier on the day, the NZD/USD pair filled in the bearish opening gap led by fresh collapse in the black gold, as markets cheered upbeat CPI figures from the OZ economy. New Zealand's CPI rose 0.2% in the January-March period, coming in stronger than the median forecast of zero change and much higher than the 0.5% decline seen in the previous quarter.
Looking ahead, markets will continue to track the sentiment around the oil and stocks market amid a lack of fresh fundamental triggers lined up for release later today.
NZD/USD Levels to consider
To the upside, the next resistance is located at 0.6950 (psychological levels), above which it could extend gains to 0.6973/0.7000 (Mar 31 High/ round number). To the downside immediate support might be located at 0.6854/47 (1h 200-SMA/ daily low) and from there to 0.6800 (round number).