NZD/USD attempts tepid-bounce, regains 200-DMA
|The Kiwi is seen extending its recovery mode from yesterday’s massive sell-off, as the bulls received fresh impetus from broad USD softness.
Currently, the NZD/USD pair rises +0.17% to 0.7171, flirting with session highs reached at 0.7176 last hour. The major reverses more-than half of the previous decline as markets resort to profit-taking heading into the release of Fed’s February meeting release, which is expected to throw fresh light on the timing of further rate rises in the coming months.
Moreover, the major is seen consolidating yesterday’s heavy losses incurred on the back of broad based US dollar rebound and a drop in NZ dairy prices, reflected by the GDT dairy auction, which recorded a 3.2% decline.
Meanwhile, markets ignored upbeat NZ credit card spending data, which arrived at +0.2% m/m vs. +3.2% last. In the day ahead, the spot could get affected by the USD dynamics, as investors gear up for the Fedspeaks, US existing home sales data and Fed minutes release.
NZD/USD Levels to consider
To the upside, the next resistance is located at 0.7187 (10-DMA), above which it could extend gains to 0.7232 (20-DMA) and from there to 0.7250 (psychological levels). To the downside immediate support might be located at 0.7147 (50-DMA) and from there to at 0.7124 (100-DMA), below which 0.7100 (round figure) would be tested.
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