NZD/USD turns positive, jumps to session high at 0.7260
|Having retested 50-day SMA support near 0.7220 area, the NZD/USD pair reversed all of its early losses and is now building on to its recovery momentum to currently trade at a fresh session high level of 0.7260.
A fresh bout of greenback selling pressure assisted the pair to shrug-off the disappointing release of New-Zealand trade balance data, that widened to 1,265 million in August as against expected deficit of 765 million and 433 million recorded in July.
However, given that the RBNZ might go ahead and further cut interest rates at its November meeting, any additional recovery seems limited and the pair might confront fresh offers at higher level.
Meanwhile, today's release of new home sales data from the US might provide some trading opportunities for short-term traders.
Technical levels to watch
From current levels, 0.7285 seems to act as immediate resistance above which the pair is likely to extend its recovery trend beyond 0.7300 handle towards 0.7315-20 resistance area. On the flip side, weakness back below 0.7245 level is likely to get extended back towards session low support near 0.7220-15 region (50-day SMA) before the pair eventually break below 0.7200 handle and head towards testing 0.7160 horizontal support.
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