NZD/USD rebounds to 50-DMA, focus shifts to China data dump

The NZD/USD pair extends its recovery into mid-Asia, and now looks to take-out 50-DMA barrier located at 0.7146 amid a broadly subdued US dollar and rally in oil prices.

NZD/USD supported at daily S1

Currently, the NZD/USD pair trades +0.11% higher at 0.7143, flirting with session tops reached at 0.7146 in the last hour. The Kiwi is on a roll higher, extending its winning streak into a fourth day today, having staged a solid recovery from a dip below 0.70 handle.

The NZD/USD pair remains well bid as investors take the yield-advantage amid a better sentiment towards risk assets, in wake of an oil output cut deal struck between the OPEC and non-OPEC producers over the weekend.

However, it remains to be seen whether the major can sustain the ongoing bullish run, as focus now shifts towards tomorrow’s Chinese data dump and upcoming FOMC interest rates decision, which is expected to have a significant impact on NZD/USD.

NZD/USD Levels to consider

To the upside, the next resistance is located at 0.7203 (100-DMA), above which it could extend gains to 0.7226 (multi-week high) and from there to 0.7250 (psychological levels). To the downside immediate support might be located at 0.7109 (200-DMA) and from there to at 0.7091 (20-DMA), below which 0.7065 (Dec 5 low) would be tested.