- Regains positive traction on Monday and seemed unaffected by a follow-through USD uptick.
- Given last week’s breakthrough 200-DMA, dip-buying seemed to be the only factor supporting.
The NZD/USD pair regained positive traction on Monday and has now climbed back closer to 3-1/2 month tops, around the 0.6785-90 region.
After Friday's late pullback, the pair managed to attract some dip-buying interest at the start of a new trading week and seemed rather unaffected by a follow-through US Dollar buying interest amid tempered expectations of an aggressive Fed rate cut.
It is worth recalling that St. Louis Fed President James Bullard on Friday ruled out the possibilities of an aggressive monetary easing by Fed, saying that a 25 bps rate cut seems appropriate and the current US economic condition doesn't warrant a larger cut.
The USD strength, however, failed to hold back bullish traders and in absence of any major market moving economic releases, the uptick could be attributed to some technical buying - given last week's sustained beak through the very important 200-day SMA barrier.
It would now be interesting to see if the pair is able to capitalize on the positive momentum to confirm a near-term bullish breakout or meets with some fresh supply at higher levels as investors still await fresh updates on US-China trade negotiations.
Technical levels to watch
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