NZD/USD Struggles to Extend Above 0.70, Lower Oil Weighs

NZD/USD Struggles to Extend Above 0.70, Lower Oil Weighs

2 May 2016, 08:31
Roberto Jacobs
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NZD/USD Struggles to Extend Above 0.70, Lower Oil Weighs

Having peaked at 0.7020 in early Asia, the NZD/USD pair drifted lower as we head into early Europe, and now struggles to rise back above 0.70 barrier.

NZD/USD: making higher tops on daily charts

Currently, the NZD/USD pair trades 0.27% higher at 0.6995, retreating slightly from session lows struck at 0.6976. The Kiwi trims gains and consolidates just below 0.70 handle waiting fresh cues from the sentiment on the European markets, especially after poor risk tone seen in the Asian session.

Further, the struggle with 0.70 barrier extends as the resource-linked NZD remains negatively affected by lower oil prices after OPEC increased crude output last month. Markets now shift their focus towards the upcoming US data ahead of the Chinese Caixin manufacturing PMI and GDT price index releases due tomorrow.

NZD/USD Levels to consider

To the upside, the next resistance is located at 0.7020 (8-day high), above which it could extend gains to 0.7052/56 (Apr 19 & 20 High). To the downside immediate support might be located at 0.6954/50 (5-DMA/ psychological levels) and from there to 0.6909/00 (20-DMA/ round number).


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