- Key support is 0.6620 while resistance comes as 0.6850.
- Some short-term technical indicators suggest the kiwi is now starting to look oversold.
NZD/USD recovered from the lows of 0.6689 and made a corrective high of 0.6716 as sour risk turned slightly more palatable with US stocks turning positive as technology shares rally, stronger US data kicking in and EU politics taking another sigh of relief on German press reporting late in NY that Chancellor Merkel and Interior Minister Seehofer reached a compromise agreement on migration issues.
NZD/USD is currently trading at 0.6712 with a high of 0.6786, (yesterday’s Asian highs) and a NY low of 0.6689.
“A stronger USD took charge overnight on the back of divergent economic data that shows the US economy continues to outperform. Some short-term technical indicators suggest the kiwi is now starting to look oversold, but momentum is all one way right now,” analysts at ANZ explained.
Week ahead:
While the market may be muted on the NY holiday, we still have GDT price index beforehand as a potential catalyst and we have Aussie retail sales/RBA. Chinese risk is elevated with US tariffs kicking on on the 6th July while nonfarm payrolls will likely be the main event.
NZD/USD levels
Key support is 0.6620 while resistance comes as 0.6850. On the wide, while below the key 200-month moving average resistance at 0.7007 longer term technicals have kept bearish. RSIs remains biased to the downside longer term and RSI is back into oversold territory on this move with the price penetrating the 21st May 2016 support. Only a break above 0.6850 would alleviate the downside pressures and eyes are focussed on 0.6675.
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