NZD/USD attempts recovery from 5-month lows, re-takes 0.70

The New Zealand dollar reverses a downward spike versus its American counterpart seen last hour, with NZD/USD now looking to regain 0.70 handle amid stabilizing oil prices.

NZD/USD fades a spike to 0.7075

Currently, the NZD/USD pair trades -0.20% at 0.6993, eyeing a decisive break above 0.70 barrier. The NZD/USD pair stages a minor-recovery in the mid-Asian session, mainly driven by stabilizing oil prices on bullish EIA inventory report and Iraq’s commitment to cut production levels.

However, the Kiwi’s recovery appears restricted as the US dollar is seen flirting with 13-year highs against its major competitors, in wake of stronger US data and hawkish Fed minutes, which suggest that the Fed would hike rates in Dec and would remain on track for steeper rate rises in next year.

Nothing of note for the major in the day ahead, as the US markets remain closed in observance of Thanksgiving Holiday, and therefore, focus now shifts towards the NZ trade balance data due to be reported in the early Asian morning tomorrow.

NZD/USD Levels to consider

To the upside, the next resistance is located at 0.7026 (5-DMA), above which it could extend gains to 0.7046 (10-DMA) and from there to 0.7100 (round figure). To the downside immediate support might be located at 0.6975 (daily low) and from there to at 0.6949 (July low), below which 0.6900 (zero figure) would be tested.

To learn more about this topic, check our video analysis