NZD/USD: 0.7000 tested amid weak NZ trade data
The Kiwi extended its four-day sell-off and almost test 0.70 handle amid bad NZ trade data and a broadly higher US dollar.
NZD/USD around 10-DMA at 0.7017
NZD/USD is making minor-recovery attempts as the bulls were rescued by a risk-friendly market environment, although the recovery appears restricted as the greenback keeps the edge against its main rivals, in the wake of the Trumpcare bill now scheduled for the House clearance between 1800-2000 GMT.
Moreover, a downside surprise seen in the NZ trade balance figures also weighs heavily on the spot, while the Kiwi also tracks losses in its OZ neighbour – AUD, as the entire base metals sector remains under pressure.
Next of relevance for NZD/USD remains the US datasets and Fedspeak due for release later in the NA session. Meanwhile, the US House vote on the Healthcare bill will hog the limelight today.
NZD/USD Levels to consider
To the upside, the next resistance is located at 0.7095/0.7100 (100-DMA/ zero figure), above which it could extend gains to 0.7135/53 (50 & 200-DMA) and from there to 0.7200 (zero figure). To the downside immediate support might be located at 0.7000/0.6993 (round figure/ 20-DMA) and from there to 0.6973/63 (Jan 16 & 17 low), below 0.6859/ 50 (Dec 23 low/ psychological levels) would be tested.
Author
Dhwani Mehta
FXStreet
Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.
