NZD/USD Testing Key Resistance Near 0.6830, Shrugs Off China PMI

NZD/USD Testing Key Resistance Near 0.6830, Shrugs Off China PMI

3 June 2016, 06:24
Roberto Jacobs
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NZD/USD Testing Key Resistance Near 0.6830, Shrugs Off China PMI

The NZD/USD pair resumes its upward trajectory in the Asian session this Friday, reversing a brief correction seen yesterday, as the US dollar turns negative against its major peers.

NZD/USD looks to regain 50-DMA at 0.6836

Currently, the NZD/USD pair jumps +0.22% and trades near fresh session highs of 0.6831, on its way to take-out 50-DMA located at 0.6836 levels. The sentiment around the Kiwi remains buoyed as markets cheer yesterday’s rally in the oil prices, following the conclusion of the OPEC meeting.

Further, the bird takes flight, completely ignoring weaker-than expected China services PMI reading, as renewed weakness seen in the US dollar across the board on the back of correction after yesterday’s rebound on in-line with expectations US ADP jobs report. More so, the NZD/USD pair also takes lead from renewed optimism seen in the Asian equities, as the Japanese and Australian stocks extend the rebound.

Next in focus for the major remains the much awaited US payrolls data due later in the NA session, with markets expected no change in the headline figure as compared to the previous month.

NZD/USD Levels to consider

To the upside, the next resistance is located at 0.6840 (Daily R1), above which it could extend gains to 0.6895/0.6900 (May 6 High/ round number). To the downside immediate support might be located at 0.6810/00 (Daily pivot/ round number) and from there to at 0.6763/60 (20 & 100-DMA).


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