19 Feb 2015
NZD/USD posts fresh monthly highs, 0.7600 in sight
FXStreet (Mumbai) - The New Zealand dollar rallied to fresh four-week highs versus the US counterpart in the Asian morning, mainly on the back of a broadly weaker US dollar, as markets ignored downbeat NZ factory gate prices numbers.
NZD/USD likely to face strong resistance at 50-DMA
Currently, the NZD/USD trades higher by 0.38% on the day, at fresh monthly highs at 0.7573 levels, heading towards 0.76 barrier. NZD/USD extended its long stretch of gains and advanced this morning after dovish FOMC minutes released overnight dragged the US dollar lower across the board, providing support to the kiwi. Moreover, traders chose to shrug off below estimates local PPI data which showed a 0.4% fall in input prices, and a 0.1% decline in output prices over the quarter.
However, weaker US dollar is likely to remain the main driver behind the stronger NZD/USD pair and may remain a key influence on the pair for rest of the day.
NZD/USD Levels to consider
To the upside, the next resistance is located at 0.7582 (50-DMA) levels and above which it could extend gains to 0.7600 levels. To the downside immediate support might be located at 0.7524 (5-DMA) levels below that at 0.7468 (10-DMA) levels.
NZD/USD likely to face strong resistance at 50-DMA
Currently, the NZD/USD trades higher by 0.38% on the day, at fresh monthly highs at 0.7573 levels, heading towards 0.76 barrier. NZD/USD extended its long stretch of gains and advanced this morning after dovish FOMC minutes released overnight dragged the US dollar lower across the board, providing support to the kiwi. Moreover, traders chose to shrug off below estimates local PPI data which showed a 0.4% fall in input prices, and a 0.1% decline in output prices over the quarter.
However, weaker US dollar is likely to remain the main driver behind the stronger NZD/USD pair and may remain a key influence on the pair for rest of the day.
NZD/USD Levels to consider
To the upside, the next resistance is located at 0.7582 (50-DMA) levels and above which it could extend gains to 0.7600 levels. To the downside immediate support might be located at 0.7524 (5-DMA) levels below that at 0.7468 (10-DMA) levels.