NZD/USD clings to recovery gains back above 50-DMA
|The NZD/USD pair witnessed a goodish recovery from and early dip below 50-day SMA and is now trading near the upper band of daily range.
Currently quoting around 0.7265-70 band, the pair is just few pips away from session peak of 0.7279 touched in the past hour of trading and has been one of the key beneficiaries of a broad based greenback retracement. The US Dollar came under some selling pressure after in-line with market estimate release of Chinese manufacturing PMI provided a minor support to investor risk appetite and boosted demand for higher-yielding currencies - like Kiwi.
Later during NY trading session, US economic docket that features the release of Core PCE Price Index, personal spending data, Chicago PMI and revised UoM consumer sentiment should provide fresh impetus for the pair.
Technical levels to watch
Immediate upside resistance remains at 0.7300 handle above which the pair seems to aim back towards 0.7350-55 horizontal resistance. On the downside, sustained weakness back below 50-day SMA support near 0.7250-45 region should now drag the pair below session low support near 0.7230, towards testing its next major support near 0.7200 handle.
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