NZD/USD Tracks Aussie Higher Amid Improved Risk Sentiment

NZD/USD Tracks Aussie Higher Amid Improved Risk Sentiment

31 May 2016, 06:06
Roberto Jacobs

NZD/USD Tracks Aussie Higher Amid Improved Risk Sentiment

The bid tone around the NZD/USD keeps growing bigger during the mid-Asian trades, mainly driven by improved risk conditions and renewed buying in its OZ neighbour AUD.

NZD/USD heads towards 100-DMA at 0.6750

Currently, the NZD/USD pair jumps +0.55% to fresh session highs of 0.6733, making headways towards 100-DMA. The Kiwi extends its rebound from the previous session and jumps sharply higher over the last hours, tracking strong gains seen in its OZ counterpart, the AUD/USD pair, following a slew of favourable Australian economic releases.

Moreover, surprisingly positive NZ building approvals combined with a recovery seen in the commodities’ prices, particularly oil and gold, collaborated to the renewed buying interest that gripped NZD/USD. While persistent risk-on moods fuelled by higher Asian equities also supports higher-yielding currency such as the NZD.

Markets now look forward to the US core PCE index, consumer confidence and personal spending data due later today ahead of the Chinese manufacturing PMI reports lined up for release tomorrow for fresh direction on the bird..

NZD/USD Levels to consider

To the upside, the next resistance is located at 0.6750 (100-DMA), above which it could extend gains to 0.6800 ( round number). To the downside immediate support might be located at 0.6671 (200-DMA) and from there to at 0.6618 (Mar 10 Low).


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