NZD/USD drops below 50-DMA, USD bid amid US election debate

The NZD/USD pair is seen reversing a spike to daily highs and drops back below 50-DMA resistance-turned support, as the greenback picks-up strength across the board amid ongoing last US presidential election debate.

NZD/USD tracks Aussie lower

Currently, the NZD/USD pair trades +0.15% higher at 0.7242, having previously posted daily highs at 0.7265. The NZD/USD pair extends its winning streak into a fourth-day today, although trims gains over the last hours, mainly driven by a strong demand for the US dollar as risk-on sentiment prevails after the third and final US presidential election debate began.

The Kiwi also fell in tandem with the AUD/USD pair after the AUD was badly hit by weaker-than expected Aus employment report, which once again reignited RBA rate cut expectations.

Looking ahead, the major will continue to get influenced by the broader market sentiment and oil price-action, ahead of a fresh batch of US data due later in the NA session.

NZD/USD Levels to consider

To the upside, the next resistance is located at 0.7265 (daily high), above which it could extend gains to 0.7300 (round figure) and from there to 0.7328 (daily R3). To the downside immediate support might be located at 0.7208 (100-DMA) and from there to at 0.7184 (Oct 19 low), below which 0.7150 (psychological levels) would be tested.