NZD/USD bounces-off a dip below 0.71, re-takes 50-DMA

Dhwani Mehta FXStreet

Having failed to extend further beyond 50-DMA at 0.7140, the NZD/USD pair ran through fresh offers and dropped to lows below 0.71 handle, before recovering almost entire slide to now regain 50-DMA.

NZD/USD awaits NZ GDT index

Currently, the NZD/USD pair trades modestly higher at 0.7144, re-approaching session highs previously posted at 0.7157. The Kiwi witnessed two-way trades so far this session, briefly spiking downward just minutes before the RBA interest rate decision, as investors were said to have removed the bids, in anticipation of wild swings in the AUD on RBA’s announcement, which could have had a significant ‘rub-off’ effect on its antipodean neighbor NZD.

Meanwhile, renewed bids seen around the greenback across the board combined with weaker oil prices, keeps the NZD/USD’s bounce in check. All eyes now remain focused on the NZ GDT price index, with analysts at Westpac expect, “tonight futures pricing WMP to rise 4% to around $3500/t. That would extend the 81% gain since Feb 2016."

NZD/USD Levels to consider

To the upside, the next resistance is located at 0.7171 (multi-week high), above which it could extend gains to 0.7208 (100-DMA) and from there to 0.7250 (psychological levels). To the downside immediate support might be located at 0.7121/19 (daily pivot/ 5-DMA) and from there to at 0.7098/97 (10-DMA/ daily low), below which 0.7073 (20-DMA) would be tested.

Sell 33%

Buy 67%

Avg Sell Price 0.7088

Avg Buy Price 0.7130

Liquidity Distribution

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.

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