FXStreet (Mumbai) – The New Zealand dollar halted its losing streak and kicked-off Asia on a slight positive tone versus the American dollar, lifting NZD/USD away from lowest levels since July 2010. The Kiwi manages to fight back lost ground somewhat mirroring gains from its Antipodean counterpart as the greenback paused its recent upsurge.
NZD/USD moves away from 5-yr lows at 0.6813
Currently, the NZD/USD pair trades 0.12% higher at 0.6863, inching towards 0.69 barrier. NZD/USD showed some signs of strength in early Asia, correcting heavy losses seen over the past one week.
Moreover, a strong rebound seen in oil prices overnight while relatively higher metals also added to the upbeat sentiment around the New Zealand dollar.
The Kiwi dropped to fresh five year lows on Tuesday as the latest series of downbeat economic release from the New Zealand fuelled the case for further interest rate cuts. While a broadly stronger US dollar also weighed on the NZ dollar.
Meanwhile, markets now await the key US economic data due to be released later today for further cues on the NZD/USD pair. While NZ trade balance due on Friday also remains in focus later this week.
NZD/USD Levels to consider
To the upside, the next resistance is located at 0.6881 (June 23 High) levels and above which it could extend gains 0.6900 levels. To the downside immediate support might be located at 0.6850 below that at 0.6813 (June 23 Low) levels.
(Market News Provided by FXstreet)