NZD/USD Turns Negative, on the Verge of Slipping Below 0.6800 Level
As USD demand returns post the key BOE event risk, the NZD/USD pair erased it early gains to 0.6836 and has now turned negative to currently trade just above the 0.6800 handle.
On Wednesday, the NZD/USD pair rose sharply after publication of RBNZ's semi-annual Financial Stability Report, which damped speculation that the central bank would provide clear indication towards an imminent interest-rate cut in June meeting.
The recovery, however, remained short-lived and the pair attracted fresh offers at higher levels. The pair now seems to resume it prior weakening trend and extend its depreciating move in the near-term.
Technical levels to watch
Below 0.6800-0.6780 area, the pair seems to confirm its near-term down-slide, initially towards 100-day SMA support near 0.6725-20 region and eventually below 0.6700 handle, towards testing 200-day SMA support near 0.6645-40 area.
On the upside, Wednesday's high near 0.6845-50 remains immediate hurdle, which if cleared could lift the pair further towards 0.6885-90 area. This 0.6885-90 area (vicinity of 0.6900 level) might now cap any near-term upside for the pair.