NZD/USD: Consolidates Near Fresh 2016 Highs, GDT Eyed

NZD/USD: Consolidates Near Fresh 2016 Highs, GDT Eyed

19 April 2016, 06:08
Roberto Jacobs
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NZD/USD: Consolidates Near Fresh 2016 Highs, GDT Eyed

The NZD/USD pair is seen making another attempt to take-out 0.70 barrier, with the bulls committed amid a broadly lower greenback and risk-on rally in the equities.

NZD/USD at 10-month tops

Currently, the NZD/USD pair trades 0.56% higher at 0.6990, testing fresh ten-month highs reached at 0.6996 in early Asia. The Kiwi prolongs its upward trajectory for the fourth straight session as the sentiment remains underpinned on the back of recent upbeat NZ fundamentals, including yesterday’s CPI figures. New Zealand's CPI rose 0.2% in the January-March period, coming in stronger than the median forecast of zero change.

Moreover, a rebound in the oil price combined with the strong gains on the Asian indices; further add to the bullish run in the NZD/USD pair. Among the Asian equities, Nikkei jumps +3.50%, Australia’s ASX 200 rallies 1.05%, while China stocks look to stabilize over the last hour.

Markets now await the latest fortnightly Fonterra’s dairy auction results - Global Dairy Trade (GDT) price index due later in the NA session for further momentum.

NZD/USD Levels to consider

To the upside, the next resistance is located at 0.7000 (key psychological level), above which it could extend gains to 0.7022 (daily R1/ June 2015 levels). To the downside immediate support might be located at 0.6926/23 (5-DMA/ 1h 50-SMA) and from there to 0.6906/00 (1h 100-SMA/ round number).


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