NZD/USD finally takes-out 5-DMA, what next?

Having regained 200-DMA at 0.7087, NZD/USD struggles to extend the bids above 0.71 handle amid slightly risk-averse market conditions.

NZD/USD eyes US data

Currently, the NZD/USD pair rises +0.40% to 0.7097, flirting with session tops reached at 0.7101, just ahead of 5-DMA. The Kiwi remains strongly bid and extends its recovery from near 0.7040 region, mainly driven by renewed buying seen around oil prices, which underpins the sentiment around the resource-linked NZD.

However, it remains to be seen if the major sustains the break above 0.71 barrier as broader markets sentiment looks somewhat mixed amid weaker Asian equities and falling treasury yields.

Next of note for the major remains the US CPI data and Fed Yellen’s testimony due later today ahead of tomorrow NZ retail sales and PPI data.

NZD/USD Levels to consider

To the upside, the next resistance is located at 0.7115 (daily R1), above which it could extend gains to 0.7150 (psychological levels) and from there to 0.7200 (round figure). To the downside immediate support might be located at 0.7087 (200-DMA) and from there to at 0.7050 (psychological levels), below which 0.7036 (monthly low) would be tested.