NZD/USD falls to test Friday’s lows

NZD/USD retreated further from 1-year highs that reached at 0.7305. The pair broke below 0.7230 (European session low) and fell to 0.7218, level located slightly above Friday’s lows.

It was trading at 0.7230, almost 70 pips below last week closing price. The kiwi is falling after rising 180 during the previous two trading days. Greenback is rising against commodity currencies despite the risk on environment. In the US, the Dow Jones is at daily highs, rising 0.65% while European markets are about to end with gains of around 1.50%.

The New Zealand dollar is also falling against the Aussie. AUD/NZD that drooped last week toward 1.0300 is now trading above 1.0410.

NZD/USD Levels to consider

To the upside, resistance levels might be located at 0.7260 (intra-day high), 0.7305/10 (multi-month high), above which it could extend gains to 0.7330 (May 26 2015 high). To the downside support might be located at 0.7210/15 (July 8 low), 0.7185 (June 22 high) and 0.7145 (June 9 high).