8 Jul 2015
NZD/USD extends recovery beyond 0.6700
FXStreet (Mumbai) - The New Zealand bounced-off five-year low and rebounded higher against the American dollar in the mid-European session, now lifting NZD/USD above 0.6700. The Kiwi stalled its ongoing slump and climbed higher capitalizing on global dollar weakness ahead of the FOMC minutes.
NZD/USD recovers from 0.6623
Currently, the NZD/USD pair trades higher by 0.84% at 0.6704, hovering close to fresh session highs reached at 0.6720. The Kiwi staged a solid comeback and edged sharply higher this session mainly driven by a profit-booking rally after the recent long run of losses ahead of the upcoming Fed minutes.
Moreover, the pair received support from a softer US dollar against its major competitors as traders now await FOMC minutes which might offer further insight into the monetary policy and will be closely watched as the FOMC statement released at June's meeting was rather dovish.
However, the recovery looks short-lived as risk-off moods on Greece, China stocks rout and falling commodities prices is likely to keep the Kiwi undermined, with markets speculating further RBA rate cut this year.
Looking ahead, markets now Fed minutes later today as well as China CPI due tomorrow for further incentives on the pair as the economic calendar remain quiet for New Zealand’s domestic events for the rest of this week.
NZD/USD Levels to consider
To the upside, the next resistance is located at 0.6733 levels and above which it could extend gains to 0.6800. To the downside immediate support might be located at 0.6650 (June 2010 levels) below that at 0.6600 levels.
NZD/USD recovers from 0.6623
Currently, the NZD/USD pair trades higher by 0.84% at 0.6704, hovering close to fresh session highs reached at 0.6720. The Kiwi staged a solid comeback and edged sharply higher this session mainly driven by a profit-booking rally after the recent long run of losses ahead of the upcoming Fed minutes.
Moreover, the pair received support from a softer US dollar against its major competitors as traders now await FOMC minutes which might offer further insight into the monetary policy and will be closely watched as the FOMC statement released at June's meeting was rather dovish.
However, the recovery looks short-lived as risk-off moods on Greece, China stocks rout and falling commodities prices is likely to keep the Kiwi undermined, with markets speculating further RBA rate cut this year.
Looking ahead, markets now Fed minutes later today as well as China CPI due tomorrow for further incentives on the pair as the economic calendar remain quiet for New Zealand’s domestic events for the rest of this week.
NZD/USD Levels to consider
To the upside, the next resistance is located at 0.6733 levels and above which it could extend gains to 0.6800. To the downside immediate support might be located at 0.6650 (June 2010 levels) below that at 0.6600 levels.