NZD/USD tracks Aussie lower, set to test 0.71

FXStreet (Mumbai) – The New Zealand wiped out gains and slipped in red versus its American counterpart in the mid-Asian session, dragging NZD/USD closer towards 0.71 barrier. The Kiwi turned negative mainly mirroring losses from its Oz neighbour after RBA Stevens hinted of further easing in his speech while the US dollar also erased losses versus its major competitors.

NZD/USD eyes 0.7200

Currently, the NZD/USD pair trades lower by -0.19% at fresh session lows 0.7118, retreating from session highs reached at 0.7159. NZD/USD turned lower tracking losses from the Australian dollar after dovish comments from the country’s central bank chief triggered fresh sell-off in the Aussie.

While traders remain cautious and prefer to liquidate their positions heading in to Reserve Bank of New Zealand’s monetary policy announcement tomorrow.

The RBNZ is likely to keep the OCR on hold when the board meets on Thursday, while the accompanying Monetary Policy Statement will provide fresh cues on future course of monetary policy outlook.

NZD/USD Levels to consider

To the upside, the next resistance is located at 0.7184 (June 9 High) levels and above which it could extend gains 0.7200 levels. To the downside immediate support might be located at 0.7101 (June 4 Low) below that at 0.7085 (June 9 Low) levels.

The New Zealand wiped out gains and slipped in red versus its American counterpart in the mid-Asian session, dragging NZD/USD closer towards 0.71 barrier. The Kiwi turned negative mainly mirroring losses from its Oz neighbour after RBA Stevens hinted of further easing in his speech while the US dollar also erased losses versus its major competitors.

(Market News Provided by FXstreet)