FXStreet (Mumbai) – The New Zealand extends its gradual ascent against the American dollar in the mid-Asian session, lifting NZD/USD back above 0.71 handle. The Kiwi pair remains well bid in Asia after the New Zealand dollar rebounded sharply versus the greenback on profit-taking after the recent weakness seen on Monday.
NZD/USD rises from 0.7088
Currently, the NZD/USD pair trades higher by 0.33% at fresh session highs of 0.7113, extending its recovery mode from fresh four year lows reached at 0.7065 on Monday. NZD/USD staged a solid comeback this session largely driven by a profit-booking spree as the traders preferred locking-in gains on their NZD shorts given the previous drop.
On Monday, the Kiwi fell to the lowest levels since September 2010, after the greenback was boosted following upbeat US data releases which supported the case for the Federal Reserve (Fed) to hike interest rates, most likely in September.
Meanwhile, a New Zealand business confidence survey released on Friday portrayed the opposite, with confidence levels almost halving in May, sending the kiwi to its lowest level this year.
Looking ahead, markets now eye RBA rate decision and NZ GDT price index for further incentives on the pair. While US macro releases including the key US NFP figures to be released on Friday is also eagerly anticipated.
NZD/USD Levels to consider
To the upside, the next resistance is located at 0.7153 levels and above which it could extend gains to 0.7200. To the downside immediate support might be located at 0.7065 (June 1 Low) levels below that at 0.7000 (2010 Low) levels.
(Market News Provided by FXstreet)