NZD/USD Could be Eyeing to Reclaim 0.7000
The NZD/USD
pair continues to inch higher and has now moved above yesterday's high
to trade near 0.6988, within striking distance of reclaiming 0.7000
handle.
The pair on Thursday shot up on broad USD weakness led by
BoJ disappointment and as RBNZ left its key interest rates unchanged.
However, RBNZ said in its statement “Further policy easing may be
required to ensure that future average inflation settles near the middle
of the target range.” The statement appeared to indicate that the
central left the doors for a June cut open. This could now be the key
fundamental aspect that could keep the NZD/USD pair capped in the
near-term.
Technical levels to watch
Should
the pair extends the ongoing momentum and manages to break past 0.7000
handle, it could be aiming back towards last week's high level
resistance near 0.7050-55 zone.
On the flip side, inability to
reclaim 0.7000 handle and a subsequent reversal could drag the pair back
towards its immediate support near 0.6950 level before the pair extends
its weakness towards 0.6910-0.6900 round figure mark support.
