NZD/USD regains poise, hits fresh 3-month tops near 0.7160

The NZD/USD pair stalled its overnight corrective slide, as buyers lurked around 0.7130 levels, fuelling a fresh rally in a bid to reach fresh multi-month tops of 0.7158.

NZD/USD eyes on NZ GDT index

The major is the best performer amongst the commodity-currencies, largely unperturbed by a sell-off in oil and base-metals’ prices, as the bulls find support from ongoing broad US dollar weakness.

Further, the spot also gained impetus from an upbeat assessment of the NZ economy by the NZ Treasury, showing employment and retail sales growth.

Moreover, the Kiwi also stands resilient to risk-off moods prevalent in the markets, in the wake of the US and UK political uncertainty, while also shrugged-off losses seen in its OZ neighbour, AUD, following the release of poor Australian current account data.

Focus now remains on the NZ GDT price index data due later in the NA session, with futures suggesting a price fall for whole milk powder around 1 to 3%. Markets also await the US datasets that will be published in the NA session.

NZD/USD Levels to consider                                                                              

To the upside, the next resistance is located at 0.7173 (classic R2/ Fib R3), above which it could extend gains to 0.7200 (round number) and from there to 0.7250 (psychological levels). To the downside immediate support might be located at 0.7125 (5-DMA), and from there to 0.7100/0.7097 (round figure/ 10-DMA), below 0.7070 (200-DMA) would be tested.