NZD/USD jumps to test 0.7000 as DXY breaches 100 mark

The New Zealand dollar is seen extending its overnight rebound against its American rival in the Asian session, now pushing NZD/USD to test 0.70 handle.

The Kiwi jumps to fresh weekly tops, as the Asian traders resort to USD selling across the board in reaction to Trump’s jawboning, which sent the benchmark 10-year treasury yields to fresh five-month troughs below 2.30% mark. Meanwhile, the USD index breaches key 100.00 support, down -0.07% on the day.

Moreover, the NZD/USD pair tracks its Australian peer higher, after solid Aus March employment report boosted the sentiment around the Aussie. Moreover, weaker treasury yields make the Emerging market currency – NZD more attractive investment, thereby, providing extra legs to the ongoing recovery in the spot.

The immediate focus now remains on the upcoming Chinese trade balance data for the month of March, which will provide further momentum on the prices. Also, a fresh batch of US economic data will also have a strong bearing on the major.

NZD/USD Levels to consider                                                                              

To the upside, the next resistance is located at 0.7021 (Classic R2/ Fib R3), above which it could extend gains to 7050/47 (psychological levels/ 50-DMA) and from there to 0.7075 (100-DMA/ key resistance). To the downside immediate support might be located at 0.6907/00 (Mar 15 low/ zero figure), and from there to 0.6887 (Mar 9 low), below 0.6859/ 50 (Dec 23 low/ psychological levels) would be tested.