NZD/USD putting 0.7000 to the test

NZD/USD has come down to test the 0.7000 neighbourhood early in the European morning, managing to rebound to the 0.7020 area soon afterwards.

NZD/USD down from YTD highs

The recent soft tone around the US dollar has allowed the pair to clinch fresh 2016 highs in the vicinity of 0.7060 on Tuesday, levels last traded in June 2015.

NZD’s upside has also been bolstered by a better mood in the commodity-space, although speculations could gather pace regarding the extent of the current rally in light of a potential rate cut by the RBNZ at its next meeting.

Data space in New Zealand, Migration figures are due tomorrow, while today’s Existing Home Sales and the EIA report will be in the limelight in the US docket.

NZD/USD relevant levels

As of writing the pair is losing 0.50% at 0.7009 facing the next support at 0.6869 (20-day sma) ahead of 0.6757 (low Apr.15) and finally 0.6753 (55-day sma). On the other hand, a surpass of 0.7055 (2016 high Apr.19) would aim for 0.7234 (monthly high Jun.10 2015) and finally 0.7631 (monthly high May.1 2015).