NZD/USD buoyed by easing trade tensions, USD pullback
|- The NZD picked up a bid on easing US-China trade tensions.
- Kiwi closed above the 10-day moving average (MA).
- The pullback in the treasury yields also works in favor of the NZD/USD bulls.
The fading US-China trade tensions put a bid under the NZD, pushing the NZD/USD to a seven-day high of 0.6958.
Further, the turnaround in the EUR/USD (from 1.1717 to 1.1791) and the resulting broad-based USD weakness may have helped the NZD/USD pair gain altitude. Moreover, the 10-year treasury yield created a bearish outside-day candle on Friday, signaling the rallies in the yields and the USD are due for a correction.
As of writing, the currency pair is trading at 0.6950. Kiwi closed above the 10-day MA yesterday, signaling the sell-off from the April 13 high of 0.7395 has ended. The spot may continue to gain altitude if the risk-on mood in the equities remains intact.
NZD/USD Technical Levels
The immediate resistance is seen at 0.6985 (May 2 low), which, if breached, would expose resistance at 0.7114 (200-hour MA) and 0.7052 (May 4 high). On the downside, support is lined up at 0.6919 (4-hour 50MA), 0.6871 (support on 4-hour chart), and 0.6851 (May 15 low).
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