NZD/USD trims Q3 GDP-led gains, back to test 0.6900

Dhwani Mehta FXStreet

The NZD/USD pair is seen reversing a part of intraday gains, stalling the rebound staged from half-yearly lows, although remains well bid above 0.69 handle amid broad based US dollar weakness.

NZD/USD cheers upbeat NZ GDP

Currently, the NZD/USD pair trades +0.20% higher at 0.6910, retreating from daily highs reached at 0.6926 on the GDP release. The Kiwi rose for the first time in seven days and staged a tepid-bounce after the NZD bulls received some respite from better-than expected NZ Q3 GDP data, which arrived at 1.1% q/q versus +0.8% expected and +0.7% previous.

A solid GDP report eased expectations of probable RBNZ easing next year, with most analysts now seeing RBNZ to remain on the hold for foreseeable the future.

However, the major pares gains as oil prices remain under pressure and weighs on the higher-yielding currency NZD. While subdued Asian equities also undermines the sentiment around the spot.

Amid pre-holiday light trading, markets eagerly awaiting the US fundamental news lined up later on Thursday, with the GDP and durable goods data closely eyed for fresh impetus.

NZD/USD Levels to consider

To the upside, the next resistance is located at 0.6923/26 (5-DMA/ daily high), above which it could extend gains to 0.6976 (daily R2) and from there to 0.7000 (zero figure). To the downside immediate support might be located at 0.6884 (previous low) and from there to at 0.6846 (daily S2), below which 0.6800 (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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