NZD/USD supported at 0.7000 amid cross-driven strength

The NZD bulls managed to regain the bids and now makes another attempt to take on the rebound beyond 0.7015 levels, after having found solid support just ahead of 0.70 handle.

The Kiwi tracked the commodities and Aussie lower in early Tokyo, but quickly regained ground amid subdued trading activity seen around the US dollar against its main competitors. The USD index trades muted around 100.20, having reversed a spike to 100.31 levels, while treasury yields waver between gains and losses.

The renewed upside attempt seen in the NZD/USD pair from 0.7001 lows, can be attributed to cross-driven strength. The cross in AUD/NZD remains heavily sold-off into a cautious tone of the RBA minutes and downbeat China’s home prices data, offering some support to the Kiwi.

All eyes now remain on the US dataflow and NZ GDT price index for next direction on the major.

NZD/USD Levels to consider                                                                              

To the upside, the next resistance is located at 7050 (psychological levels), above which it could extend gains to 0.7080 (100-DMA/ key resistance) and from there to 0.7100/29 (round number/ 200-DMA). To the downside immediate support might be located at 0.6991/80 (20 & 10-DMA), and from there to 0.6907/00 (Mar 15 low/ zero figure), below 0.6887 (Mar 9 low) would be tested.