NZD/USD off-monthly lows, but capped by 0.7100

The NZD/USD pair extends its struggle to regain 0.71 handle in the mid-European session, although remains supported near 200-DMA support located at 0.7081.

NZD/USD resilient to broad USD strength

Currently, the NZD/USD pair drops -0.33% to 0.7096, unable to chew the offers placed at 0.71 barrier. The Kiwi keeps its range-trade intact within 20-pips, as the bears fail to benefit from a broadly stronger US dollar and weaker-than expected Chinese economic releases.

Meanwhile, reports of two earthquakes struck in New Zealand and the consequent floods-warnings issued today, also keep the sentiment around the NZD somewhat undermined.

Markets now await the US economic releases due later this week, including Tuesday’s retail sales data for fresh incentives on the major. While the NZ retail sales report has been delayed on the account of the natural calamity, however, Fonterra’s fortnightly dairy auction results will be closely eyed in the NA session tomorrow.

NZD/USD Levels to consider

To the upside, the next resistance is located at 0.7119 (daily pivot), above which it could extend gains to 0.7164 (5-DMA) and from there to 0.7200 (round figure). To the downside immediate support might be located at 0.7081/76 (200-DMA/ daily low) and from there to at 0.7050 (psychological levels), below which 0.7032 (Oct low) would be tested.