NZD/USD Extends Recovery Towards 0.6900
The recovery from NY lows gained further traction in the Asian hours, driving the NZD/USD pair further towards 0.69 handle.
NZD/USD takes-out 20-DMA
Currently,
the NZD/USD pair trades 0.47% higher at fresh session highs of 0.6787,
breaking through 20-DMA upside barrier placed at 0.6883. The Kiwi’s
bullish run found fresh legs over the last hours, as the US dollar
extended its downside momentum versus its major peers. The USD index now
drops -0.12% to hit fresh session lows of 94.64.
Moreover, a
rebound in the oil prices after yesterday’s sharp decline collaborated
to the upbeat tone around the resource-linked Kiwi. Markets now await
the crucial policy decision from the Fed as well as the RBNZ later this
week for next direction on the bird.
In the meantime, economic
releases from the US and New Zealand will be closely eyed for further
momentum on the major. The durable goods data from the US will be
published later today, followed by NZ trade balance data due tomorrow.
NZD/USD Levels to consider
To
the upside, the next resistance is located at 0.6920/24/ (1h 100 &
200-SMA), above which it could extend gains to 0.6950 (psychological
levels). To the downside immediate support might be located at 0.6863
(1h 20-SMA/ daily pivot) and from there to 0.6800/0.6782 (round number/
50-DMA).
