NZD/USD: capped at 0.7280, drifting on the offer ahead of Chinese trade balance

Currently, NZD/USD is trading at 0.7252, down -0.09% on the day, having posted a daily high at 0.7266 and low at 0.7252.

Wall Street closes day with robust gains as markets cheer Yellen's testimony

NZD/USD has been on the bid in an environment where the greenback was trodden on due to Yellen's dovish testimony overnight. Commodities were elevated, supporting the antipodeans until early Asia where profit taking has ensued and the Kiwi is giving ground back, under water and awaiting the Chinese trade balance later in the shift.

Forex today: dovish Yellen testimony, bullish Q&A, dollar down

In respect to Yellen's testimony,  the most noteworthy aspects of today’s comments were on inflation. Analysts at Nomura explained that Yellen acknowledged that “the recent lower readings on inflation are partly the result of a few unusual reductions in certain categories of prices”.  On the other hand, the analysts also explained how she also argued that uncertainty about inflation in particular “… uncertainty about when and how much inflation will respond to tightening resource utilisation ” was one of the key risks to the outlook. 

NZD/USD levels

Resistance: 0.7280, 0.7299 July 4 high; 0.7345 July 3 high; 0.7376 Feb. 7 high; 0.7393 Nov. 9 high. Support: 0.7220, 0.7205/06 June 22/21 lows; 0.7186 June 15 low; 0.7150 June 5 high; 0.7127 June 6 low. On the wide, on a break below 0.7080/00 opens 0.6970.