NZD/USD attempts a bounce to 0.6650

FXStreet (Mumbai) - The New Zealand dollar jumped to fresh three-day highs versus the American dollar in early moves, lifting NZD/USD towards the mid-point of 0.66 handle. The Kiwi remains supported taking advantage of the broad vulnerability of the greenback as traders unwound their long positions ahead of Wednesday’s FOMC decision.

NZD/USD bounces-off 0.6605

Currently, the NZD/USD pair trades higher by 0.51% at 0.6640, retracing from fresh session highs reached at 0.6643 some time ago. The Kiwi extends its upbeat momentum benefitting from broadly lower buck amid risk-aversion sparked by re-emergence of China slowdown fears.

Westpac senior currency strategist Richard Franulovich mentioned, "Dollar weakness is a risk-aversion story reflecting China stock."

However, the upside may remain capped as the Kiwi faces strong resistance at 0.6650 levels while lack of NZ macro data also fails to provide the much-needed impetus to the Kiwi.

Looking ahead, the pair may influence by US macro release due later today while FOMC statement on Wednesday remains the main highlight this week.

NZD/USD Levels to consider

To the upside, the next resistance is located at 0.6656 (July 21 High) levels and above which it could extend gains 0.6698 (July 23 High). To the downside immediate support might be located at 0.65573 (July 27 Low) below that at 0.6558 (July 22 Low) levels.

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Gold capped below $ 1100

Gold prices on Comex dropped in Asia, having failed to reclaim 1100 threshold in the previous session, as sliding Asian equities and broadly softer greenback offers little support to the yellow metal.
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