NZD/USD Turns Negative Below 0.7100, Testing Thursday’s Low

NZD/USD Turns Negative Below 0.7100, Testing Thursday’s Low

10 June 2016, 06:45
Roberto Jacobs
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NZD/USD Turns Negative Below 0.7100, Testing Thursday’s Low

The NZD/USD pair extends its retreat from yearly tops in the Asian session this Friday, having met fresh supply over the last hour amid renewed risk-off wave.

NZD/USD unable to keep 0.71 handle

Currently, the NZD/USD pair drops -0.06% to 0.7091. The Kiwi failed to sustain at higher levels and now extends its corrective slide as risk-off trades intensified after the black gold reverted to the red zone and capped the recovery in the Asian stocks.

The bird took flight to fresh yearly tops near 0.7150 after the RBNZ left its interest rates on hold at 2.25%, while at the same time talked up inflation as well as NZ economic growth prospects. However, the rally lacked follow-through as the US dollar jumped back sharply on the bids against its major peers after a four-day losing streak.

Next in focus for the major remains the US consumer sentiment data due later in NA session ahead of China economic releases lined up for release this Sunday. While the looming Fed decision due next week is likely to shape up the next direction for the Kiwi.

NZD/USD Levels to consider

To the upside, the next resistance is located at 0.7147/50 (yearly highs), above which it could extend gains to 0.7200 (daily S3/ round number). To the downside immediate support might be located at 0.7074 (1h 50-SMA) and from there to at 0.7026 (5-DMA).


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