NZD/USD supported above 0.6850 amid risk-on, US data eyed

Dhwani Mehta FXStreet

The NZD/USD pair extends its bearish consolidation phase into a fourth day this Monday, with the bears now targeting a break below ten-month lows struck last week at 0.6845.

Over the last hour, the Kiwi is seen making tepid-recovery attempts as broad USD rebound stalls, while persisting risk-on moods also boost the demand for higher-yielding currency NZD.

Additionally, upbeat assessment of New Zealand’s economy by the NZ treasury in its monthly economic indicators report, further lends support to the recovery.

However, it remains to be seen if the spot sustains the recovery ahead of a fresh batch of US economic data, which may provide extra legs to the USD rebound seen so far this session.

The US docket offers the Core PCE price index, ISM manufacturing report, while US Treasury Secretary Mnuchin’s speech will also hog the limelight.

US congressional negotiators have reached a deal to fund government

NZD/USD Levels to consider

To the upside, the next resistance is located at 0.6893/0.6900 (classic R2/ round number), above which it could extend gains to 0.6943/50 (10-DMA/ psychological levels) and from there to 0.6966/82 (20-DMA/ 50-DMA). To the downside immediate support might be located at 0.6945 (10-month lows), and from there to 0.6800 (key support), below 0.6750 (psychological levels) would be tested.

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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