NZD/USD Rebounds Back above 0.6800 from the Vicinity of 100-DMA Support
On the first trading day of the week, the NZD/USD
pair started on back-foot led by weaker-than-expected Chinese economic
data. The pair, however, witnessed a remarkable recovery from morning
lows of 0.6746 to move back above 0.6800 at the time of writing.
The NZD/USD pair halted its downward momentum and rebounded from the vicinity of 100-day SMA support near 0.6725-23 zone. Positive sentiment surrounding commodity-linked currencies on the back of strong crude-oil prices could be the key attribute for the pair's smart recovery from day's through level.
However, concern over China led global economic slowdown is likely to cap any big near-term upside for the pair. Moreover, investors would now shift their focus to today's Empire State Manufacturing Index from the US and tomorrow’s quarterly NZ inflation expectations ahead of the monthly US CPI number, in order to get fresh cues of the pair's short-term direction.
Technical levels to watch
On the immediate upside, 0.6820 level, closely followed 50-day SMA near 0.6830 and 0.6847-50 horizontal area, seems to act as immediate resistance levels. On a clear break-through these resistance levels, the pair seems all set to extend its up-move towards 0.6880-0.6900 round figure mark (20-day SMA region).
On the flip side, below day's through level of 0.6746, 100-day SMA near 0.6725 region, remains immediate key support to be defended, below which the pair could aim for sub-0.6700 level to test 200-day SMA support near 0.6650-45 zone.