NZD/USD eases-off 0.7065 on weaker Aussie, bad NZ data

Dhwani Mehta FXStreet

Despite broad based US dollar weakness and positive oil prices, the NZD/USD pair remains on the offers, having stalled its steady recovery path near 0.7065 region.

NZD/USD: Drops to test daily pivot at 0.7040

The selling bias seen in the Kiwi so far this session, is mainly driven by sharp losses seen in its OZ neighbour, after the Aussie tumbled on a cautious RBA minutes and sell-off in copper prices.

Moreover, latest NZ credit card spending data showed a steep drop in the month of Feb, arriving at -1.4% m/m versus prior +0.4%, revised up from +0.2% and +5.3% y/y versus +7.1% last.

Looking ahead, all eyes remain on the NZ GDT price index and US current account data due later today for fresh impetus on the spot. Meanwhile, Fed official Dudley’s speech scheduled during Europe, will provide incentives on the USD moves.

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 0.7150/56 (50 & 200-DMA) and from there to 0.7200 (zero figure). To the downside immediate support might be located at 0.7025/15 (20 & 5-DMA) and from there to 0.6973/63 (Jan 16 & 17 low), below 0.6859/ 50 (Dec 23 low/ psychological levels) would be tested.

Sell 67%

Buy 33%

Avg Sell Price 0.6968

Avg Buy Price 0.7040

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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