NZD/USD catches fresh bids, re-attempts 0.6950 on broad USD selling

• Aggressive USD selling pushes Kiwi 30-pips higher,                     looks to regain 0.6950.
• Will the uptick sustain amid risk-off, as oil and stocks trend lower?

Having found fresh buyers once again near the 0.6920 region, the NZD/USD pair made another attempt to regain the 0.6950 barrier, helped by the extension of the losses in the US dollar across its main competitors.

The broad-based selling in the US dollar is mainly driven by a sold rebound staged by the EUR/USD pair, as the Euro turned bullish on reports that the newly-formed Eurosceptic Italian coalition government failed.

Meanwhile, upbeat China’s April industrial profits combined with the renewed optimism over the US – North Korea Summit also helped lift the sentiment around the major. The US President Trump twitted earlier today that the US team had arrived in North Korea to make arrangements for the Summit.

However, it remains to be seen if the spot can sustain the renewed upside, as the risk-off sentiment is seeping back into Asia amid falling oil prices after the OPEC and non-OPEC producers are considering easing supply curbs.

Also, the pair may continue to take the cues from the USD dynamics and broader market sentiment amid holiday-thinned light trading, with the UK and US on holidays.

NZD/USD Technical Levels

Flavio Tosti, FXStreet’s Analyst, writes: “The 0.6900 handle is acting as support and resistance as the market has used the level as the main pivot in recent days. A break below the 0.6900 level should bring the market to 0.6851 swing low followed by the 0.6800 figure. To the upside, bulls should meet resistances at 0.6940 supply level and at 0.6975 swing high. Additionally, the bearish head-and-shoulders formation might  send Kiwi lower but bears will need to overcome the rather strong 0.6900 handle.”