NZD/USD clings to strong gains for second straight session

Haresh Menghani FXStreet

The NZD/USD pair maintained its strong bid tone for the second consecutive session and jumped back above 100-day SMA to hit a 4-week high. The pair, however, has retreated from session peak and is currently hovering around 0.7200 handle.

During Asian session on Thursday, the pair caught fresh bids after RBNZ Governor Graeme Wheeler offering less dovish picture for NZ Economy and said that interest rates were low enough to return inflation to his 2 percent goal amid a robust economic expansion. Wheeler's comments diminished prospects of any further monetary easing by RBNZ in the near-future and lifted the pair to its highest level since Nov. 11.

Moreover, upbeat Chinese imports and exports data eased concerns of an immediate economic slowdown in the world's second largest economy and boosted demand for riskier / higher-yielding currencies - like the Kiwi.

Later during European session, ECB monetary policy decision is expected to infuse volatility in the FX market and provide fresh impetus for the major ahead of US economic docket featuring usual weekly jobless claims data, later during NA session.

Technical levels to watch

From current levels, 0.7228 (Nov. 11 high) seems to act as immediate resistance above which the pair is likely to dart towards 0.7260-65 resistance area en-route its next major hurdle near 0.7300 handle. On the downside, 0.7165 area now becomes immediate support to defend, which if broken is likely to accelerate the slide towards 0.7125 support before the pair eventually breaks below 0.7100 handle and aim towards testing 0.7085-80 strong horizontal support.

1 Week
1 Month
1 Quarter

1 Week

Avg Forecast 0.7084

12% Bullish
88% Bearish
0% Sideways

Bias Bearish

1 Month

Avg Forecast 0.6964

7% Bullish
64% Bearish
29% Sideways

Bias Bearish

1 Quarter

Avg Forecast 0.6909

6% Bullish
78% Bearish
17% Sideways

Bias Bearish

Author

Haresh Menghani

FXStreet

Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.

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