The New Zealand dollar is seen reversing a part of intraday gains against its American counterpart, sending NZD/USD slightly lower near 0.7030 region.
A phase of upside consolidation in the US dollar versus its main competitors, stalled the upmove in the Kiwi, with the bulls having ran into the key resistance of 0.7050 barrier.
Moreover, a bout of profit-taking after the sudden 45-pips spike on the CPI report release, also cannot be ruled out as one of the reasons behind the ongoing retreat in the spot
Earlier on the day, the NZD/USD pair rallied hard in a knee-jerk reaction to stronger-than expected NZ CPI data. The CPI data showed the inflation hit the target for the first time in five years. New Zealand Consumer Price Index (QoQ) registered at 1% above expectations (0.8%) in 1Q
Focus now shifts towards the US macro news due later in the NA session, which will provide fresh impetus to the spot.
NZD/USD Levels to consider
To the upside, the next resistance is located at 7050/53 (psychological levels/ 3-week tops), above which it could extend gains to 0.7082 (100-DMA/ key resistance) and from there to 0.7100/27 (round number/ 200-DMA). To the downside immediate support might be located at 0.6991/99 (20 & 10-DMA), and from there to 0.6907/00 (Mar 15 low/ zero figure), below 0.6887 (Mar 9 low) would be tested.
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