NZD/USD: Knee-jerk downward spike to 0.7100 reversed

The NZD/USD pair is seen struggling hard to take on the recovery beyond 0.7130 region in the mid-Asian trades,             having staged a sharp reversal from just ahead of 0.71 handle.

NZD/USD unfazed by RBNZ Wheeler’s comments

Currently, the NZD/USD pair trades dead flat at 0.7120, aiming to regain 0.7150 levels. The NZD bulls fought back control, lifting the NZD/USD pair back to the familiar ranges, after it witnessed an aggressive selling-wave at Tokyo-open.

However, the recovery appears to lack follow-through as the bulls remain largely unimpressed by RBNZ Wheeler’s speech before the parliament, with the central bank offering no new surprises. RBNZ Wheeler: Expects inflation back in target band by Q4. While negative oil prices also keep a check on the recovery.

Meanwhile, markets also continue to weigh dismal NZ GDT price index figures, as focus now shifts towards US macro updates.

NZD/USD Levels to consider

To the upside, the next resistance is located at 0.7139 (50-DMA), above which it could extend gains to 0.7171 (multi-week high) and from there to 0.7206 (100-DMA). To the downside immediate support might be located at 0.7102 (daily low) and from there to at 0.7071 (20-DMA), below which 0.7055 (daily S2) would be tested.