NZD/USD stages solid comeback as Oil attempts recovery

The NZD/USD pair reversed a temporary slide seen yesterday and resumed the ongoing bullish streak in response to the persistent risk-on trades and recovery in oil prices.

NZD/USD flirts with 5-DMA at 0.7266

Currently, the NZD/USD pair trades +0.61% higher at 0.7265, hovering within a striking distance of session highs scored at 0.7270 some minutes ago. The Kiwi rebounds this session in tandem with the oil prices as risk-on moods fuel the appetite for risk/ higher-yielding assets such as equities, oil, NZD etc.

Moreover, renewed selling seen in the US dollar against its major competitors also collaborated to a fresh bid-wave in the NZD/USD pair.

Next of note for the major remains the Fed speaks followed by RBNZ Assistant Governor’s speech, besides the Chinese trade and GDP numbers due later this week will be also closely watched.

NZD/USD Levels to consider

To the upside, the next resistance is located at 0.7308 (multi-month high), above which it could extend gains to 0.7329 (week ended May 24 2015 high). To the downside immediate support might be located at 0.7219 (10-DMA) and from there to at 0.7168 (20-DMA).