NZD/USD Supported Around 0.6800, 50-DMA Eyed

NZD/USD Supported Around 0.6800, 50-DMA Eyed

11 May 2016, 06:14
Roberto Jacobs

NZD/USD Supported Around 0.6800, 50-DMA Eyed

Following the release of RBNZ financial stability report (FSR), the NZD/USD pair continues to consolidate the upside around 0.68 handle against the back drop of falling oil prices.

NZD/USD finds stiff resistance around 0.6825 region

Currently, the NZD/USD pair trades 0.55% higher at 0.6792, now looking for a retest of daily tops reached at 0.6826. The Kiwi makes a fresh attempt towards 50-DMA located at 0.6836, oscillating back and forth in a 30-pips narrow range this session so far, as markets continue to digest the FSR published by the RBNZ as well as the comments from RBNZ governor Wheeler.

Further, the upside seems capped as the oil prices erased gains and turned negative post-Chinese open and fuelled mild risk-off moods into the markets. In absence of significant economic data for the major in the day ahead, markets will closely eye US crude stockpiles report for further cues on the oil-driven market sentiment.

NZD/USD Levels to consider

To the upside, the next resistance is located at 0.6826/36 (daily high/ 50-DMA), above which it could extend gains to 0.6892/0.6900 (1h 200-SMA/ round number). To the downside immediate support might be located at 0.6777 (50-DMA) and from there to 0.6728 (100-DMA).


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