FXStreet (Mumbai) – The New Zealand dollar extends its recovery path from five year lows versus the American dollar in the mid-Asian trades, keeping NZD/USD above 0.70 barrier. The Kiwi defends mild gains in Asia in a rather weak attempt at staging a comeback after witnessing more than 2% fall on Thursday following RBNZ’s surprise rate cut.
NZD/USD poses weak recovery
Currently, the NZD/USD pair modestly higher by 0.10% at 0.7019, retreating from session lows reached at 0.7005. NZD/USD edged higher slightly on the back of profit-taking following the recent downfall.
On Thursday, the kiwi slumped to fresh five year lows at 0.6965 after the central bank’s decision to cut the Official Cash Rate (OCR) to 3.25% was announced. The NZD/USD pair remains pressured as the RBNZ also hinted that further rate cut was on table.
Moreover, broad based US dollar strength following better than expected US retail sales and in line with expectations weekly jobless claims kept the Kiwi undermined.
Later today, US PPI and consumer sentiment data will provide fresh cues on the US dollar moves, having major impact on the NZD/USD pair.
NZD/USD Levels to consider
To the upside, the next resistance is located at 0.7050 levels and above which it could extend gains 0.7080 levels. To the downside immediate support might be located at 0.7005 (Today’s Low) below that at 0.6965 (June 11 Low) levels.
(Market News Provided by FXstreet)