NZD/USD tests post-Brexit highs, then retreats

Dhwani Mehta FXStreet

The NZD/USD pair extends its bullish run into a fourth-day today, having reversed more-than half the Brexit-induced slide, as the recovery in oil and global risk-on underpins the sentiment.

NZD/USD eyes on 0.7200

Currently, the NZD/USD pair rises 0.05% to 0.7138, easing-off session highs posted at 0.7158 in mid-Asia. The Kiwi consolidates the recent upside and moved away from daily tops as the bulls were hit by poor Chinese manufacturing PMI report released earlier today. China is New Zealand's top export destination.

Moreover, the recent upbeat NZ fundamentals also continue to boost the bids for the NZD against its American counterpart. According to an ANZ survey yesterday, New Zealand business confidence soared to a six-month high in June. While NZ FinMin English’s talking up the NZD also continues to push the local currency higher.

Looking ahead, the major will continue to get influenced by the sentiment on the oil and stock markets ahead of the US economic releases.

NZD/USD Levels to consider

To the upside, the next resistance is located at 0.7194/0.7200 (daily R2/ round number), above which it could extend gains to 0.7250 (psychological levels). To the downside immediate support might be located at 0.7119/10 (10-DMA & daily pivot) and from there to at 0.7090 (20-DMA).

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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