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  • Clinging to the 10-D SMA, technicals lean bullish ahead of Aussie jobs today; 0.6920,  would put the bulls back in control.
  • However, a correction lower opens the case for further supply into the bearish channel below 0.6720.

NZD/USD has been in a 50% recovery of yesterday’s late Asian highs from the 0.6840’s and has made a score of 0.6805 in the NY session today as the dollar gave in and profits were to be had from yesterday’s rally. Currently, the bird is perched at 0.6796.

The lift in the kiwi intensified during the NY session when stocks rallied and commodities bounced. “The NZD bounced overnight, although it is still not back at its post-CPI highs. There remain elements of caution, with export prices softening, trade tensions lingering and the domestic economy patchy, yet positioning remains the biggest near-term issue, which we suspect will see the kiwi biased to squeeze higher,” analysts at ANZ Bank New Zealand Limited explained.

Markets had traded with a modestly upbeat tone

Meanwhile, the markets had overall, traded with a modestly upbeat tone despite a reemergence of trade risks after the Fed flagged greater concern over trade policy in its Beige Book and President Trump threatened “tremendous retribution” on German automakers should talks with the EU fail, as pointed out by analysts at TD Securities.  

For the day ahead, all eyes will be on Aussie jobs data and indeed the theme around  CNY slippage and how officials seem to be willing to allow amid trade war and deleveraging threats.  

NZD/USD levels

Support is located at 0.6720 and resistance is located at 0.6860. The price is clinging to the 10-D SMA, (6792) and has eyes on the 21-D SMA, (6804) with positive RSI and technicals that are leaning bullish. However, a correction lower opens the case for further supply into the bearish channel below 0.6720. 0.6920, however, would put the bulls back in control and bulls can target the June highs. The 200-month moving average resistance at 0.7007 is next key level.