NZD/USD Drops Sharply to Test 0.6900 Amid Broad USD Rebound

NZD/USD Drops Sharply to Test 0.6900 Amid Broad USD Rebound

6 June 2016, 06:59
Roberto Jacobs
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NZD/USD Drops Sharply to Test 0.6900 Amid Broad USD Rebound

The NZD/USD pair is seen retreating a part of Friday’s massive rise and now inches closer towards 0.69 handle as the US dollar corrects higher against its major rivals.

NZD/USD drops below daily pivot at 0.6938

Currently, the NZD/USD pair drops -0.55% to 0.6916, hovering within a striking distance of fresh session lows struck at 0.6910 in the last hour. The Kiwi extends its retreat from monthly tops amid broad based US dollar rebound as markets book profits on their USD shorts after the buck slumped on dismal US NFP report, which squashed hopes of a Fed rate hike in the upcoming quarter.

Moreover, NZD/USD also slides as markets seek to reposition heading into the RBNZ monetary policy decision due later this week, while thin trading on the back of a public holiday in New Zealand further seems to accentuate the down move.

The immediate focus now remains on the monetary policy outlook between the Fed and RBNZ as markets gear up for a fresh speech likely to be delivered by Fed Chair Yellen later in the NA session today.

NZD/USD Levels to consider

To the upside, the next resistance is located at 0.6952/64 (Daily high/ Monthly high), above which it could extend gains to 0.7000 (psychological levels). To the downside immediate support might be located at 0.6900/0.6888 (round number/ 5-DMA) and from there to at 0.6843 (50-DMA).


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