FXStreet (Mumbai) – The bears appear to loosen grip on the NZD, now pushing the NZD/USD pair further away from a knee-jerk downward spike hit below 0.6750 on the release of NZ trade balance data.
NZD/USD supported at hourly 100-SMA in recent dealings
Currently, the NZD/USD pair drops -0.16% to 0.6777, recovering from fresh daily lows struck at 0.6742 in opening trades. The Kiwi extends its recovery mode from the NZ trade-balance-led sell-off and now trades well above 10-DMA with eyes set on 0.68 barrier.
NZD/USD plunged almost 50 pips in a knee-jerk reaction to the poor NZ trade figures which revealed that the trade deficit unexpectedly expanded last month, despite huge beef missing estimates of an $825 million deficit.
However, the recovery remains weak on the back of persisting risk-aversion across Asia as the equities remain under heavy selling pressure. While falling oil and bullion prices also keep the bird undermined.
On Monday, the Kiwi flew through the roof bolstered by the Chinese rate cut news while markets also booked profits after last week’s sell-off.
Later in the day, markets will continue to track the broader market sentiment ahead of key US durable goods orders data and consumer confidence numbers due later today. While Wednesday’s Fed outcome and Thursday’s RBNZ rate statement will remain the main highlight.
NZD/USD Levels to consider
To the upside, the next resistance is located at 0.6789/0.6800 (hourly 200-SMA + round number), above which it could extend gains to 0.6850/57 (Oct 20 High + daily R2) levels. To the downside immediate support might be located at 0.6767 (hourly 100-SMA) below that 0.6742/20 (Today’s Low + 20-DMA).
(Market News Provided by FXstreet)