NZD/USD: Re-attempts 0.7050 post-RBNZ jawboning

Dhwani Mehta FXStreet

The Kiwi is on a gradual recovery path from post-RBNZ decision-induced slide to 0.7025 levels, in the wake of a rebound in the Asian equities and oil prices amid risk reset.

NZD/USD back near 5-DMA at 0.7042

NZD/USD is seen attempting gains in early Europe, having made a solid comeback over the last hours, as risk sentiment improved somewhat, after the Asian markets stalled sell-off following their US counterparts.

The Kiwi was hit by a fresh selling-wave after the RBNZ policy decision announced earlier today. The RBNZ left its cash rates unchanged at a record low of 1.75%, although resorted to some currency jawboning, which badly hit the NZD.

All eyes now remain on the US House vote on the Trumpcare bill, which will drive the broader market sentiment, and in turn the risk currency Kiwi.

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 0.7141/54 (50 & 200-DMA) and from there to 0.7200 (zero figure). To the downside immediate support might be located at 0.7000/0.7010 (round figure/ 10-DMA) and from there to 0.6973/63 (Jan 16 & 17 low), below 0.6859/ 50 (Dec 23 low/ psychological levels) would be tested.

1. R3 0.7132
2. R2 0.7103
3. R1 0.7073
PP 0.7045
1. S1 0.7015
2. S2 0.6987
3. S3 0.6957

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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