NZD/USD fails to hold above 50-DMA

The NZD/USD pair extended its daily rise to its highest level since March 30 at 0.7035 before losing momentum amid a technical correction observed in the US Dollar Index. At the moment, the pair is trading at 0.7020, up 0.33% on the day.

Although the traders in the United States came back today after a three-day holiday, the market volatility remained low amid a lack of fresh fundamental catalysts. The DXY has been moving in a very narrow range just above the 100 handle, unable to draw inspiration from the U.S. Treasury yields, which have been the main driver for the greenback lately. The 10-year T-bond yield is comatose around 2.3%.

 The RBA meeting minutes will be released during the Asian session and it's seen as the only potential market mover. Any sharp fluctuations witnessed in the AUD/USD pair could bring volatility to the NZD/USD pair as well as they are highly correlated.

Technical outlook

The pair faces the immediate resistance at 0.7030 (50-DMA) before 0.7075 (100-DMA) and 0.7135 (200-DMA). On the other side, supports could be seen at 0.7000 (psychological level), 0.6975 (Apr. 14 low) and 0.6910 (Apr. 12 low).