NZD/USD off 5-week tops, back below 0.7200
The New Zealand dollar is seen trimming gains against its American counterpart in the early European morning this Friday, pushing the NZD/USD pair to extend the retreat below 0.72 handle.
Currently, the NZD/USD pair trades +0.0.08% higher at 0.7198, having posted fresh 5-week highs at 0.7225 earlier today. The NZD/USD pair is seen doing away with its bid tone as the greenback takes on the recovery above 101 handle versus its six main rivals.
While the Kiwi looks past upbeat Chinese Q4 GDP data, which revived hopes of a steady economic recovery in China, New Zealand’s biggest trading partner. The major now remains at the mercy of the USD dynamics, as Trump takes office as the US 45th President later today.
NZD/USD Levels to consider
To the upside, the next resistance is located at 0.7225 (5-week high), above which it could extend gains to 0.7250 (psychological levels) and from there to 0.7300 (zero figure). To the downside immediate support might be located at 0.7166 (5-DMA) and from there to at 0.7123 (10-DMA), below which 0.7106 (100-DMA) would be tested.