NZD/USD Flirts with 0.68 Handle Amid Oil-Price Rally

NZD/USD Flirts with 0.68 Handle Amid Oil-Price Rally

16 May 2016, 11:56
Roberto Jacobs

NZD/USD Flirts with 0.68 Handle Amid Oil-Price Rally

The recovery in the NZD/USD pair gained further traction in the European session, as markets shrugged-off weaker Chinese data dump and cheered a fresh rally in the oil prices.

NZD/USD: A break of 0.6805 key for further upside

Currently, the NZD/USD pair rises +0.16% to 0.6786, consolidating the recovery just shy of 0.68 handle. The NZD/USD pair halted its downside momentum and staged a solid comeback this Monday as sentiment around the resource-linked Kiwi was boosted after the oil prices jumped higher and hit fresh half-yearly highs on Goldman Sach’s bullish outlook on oil fundamentals.

However, the upside faces stiff hurdle as a slew of poor Chinese economic data released over the weekend, continue to weigh on investors’ mind. Later today, markets await the US datasets for fresh cues on the US dollar ahead of tomorrow’s eventful trading session, with the NZ inflation expectations data to be reported ahead of the US CPI report and NZ GDT price index.

NZD/USD Levels to consider

To the upside, the next resistance is located at 0.6822/42 (1h 200-SMA/ 50-DMA), above which it could extend gains to 0.6864/0.6900 (20-SMA/ round number). To the downside immediate support might be located at 0.6725 (100-DMA) and from there to 0.6700/0.6655 (round number/ 200-DMA).


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