NZD/USD eyes September lows

NZD/USD is falling on Wednesday and recently rebounded after approaching September lows. The pair remains under pressure amid a stronger US dollar also pressured by the rally of AUD/NZD.

Still above key support

NZD/USD moved all day with a bearish bias and recently bottomed at 0.7232, hitting the lowest level since Monday. Afterward, it bounced to the upside, to the previous trading range between 0.7240 and 0.7265. Currently, it trades at 0.7244/47, down 50 pips for the day.

Greenback held to gains after the US durable goods orders report and also after the testimony of Janet Yellen, Fed’s Chair, at a US House of Representatives Committee. Yellen mentioned that there is no timetable for raising rates.

Tomorrow no economic data from New Zealand will be released while in the US it will be the busiest day with the release of jobless claims, GDP, trade balance and pending home sales data. Also, Janet Yellen will present again testimony to the Congress.

Technical levels to watch

To the downside the key immediate support is the 0.7220 - 0.7200 area; a break lower could add pressure to the kiwi; below here attention would turn to 0.7165 (Aug 15 low) and 0.7135/40 (Aug 3 low). On the flip, side resistance could now be seen at 0.7265 (American session high / 20-hour moving average), 0.7305 (daily high) and 0.7330 (Sep 28 high).