NZD/USD back in the red amid fresh USD demand

The bears fought back control this Tuesday, reversing Monday’s brief recovery as weak NZ data combined fresh USD buying in Asia knocked-off the NZD/USD pair back near 5-DMA located at 0.6952.

NZD/USD remains on the offers as sentiment remains sours towards risk/ higher-yielding currencies amid mixed tone seen on the Asian indices, while broad based US dollar strength returned to markets, following Yellen’s disappointment, collaborating to the downside in the spot.

However, the losses remain capped amid persistent weakness in the treasury yields, which makes the Emerging Market currency – NZD more attractive. Next of note for the major remains the second-tier US data in the JOLTS job openings lined up for release in the NA session.

NZD/USD Levels to consider                                                                              

To the upside, the next resistance is located at 0.7000/03 (round number & 20-DMA), above which it could extend gains to 7050/51 (psychological levels/ 50-DMA) and from there to 0.7075 (100-DMA/ key resistance). To the downside immediate support might be located at 0.6907/00 (Mar 15 low/ zero figure), and from there to 0.6887 (Mar 9 low), below 0.6859/ 50 (Dec 23 low/ psychological levels) would be tested.