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).
