NZD/USD stalls 3-day slide, reverts to 5-DMA

Having reversed more-than half the RBNZ-led rally, the NZD/USD pair halted its downslide and bounced slightly higher in early Europe, now climbing back towards 5-DMA at 0.7052.

NZD/USD supported at 0.7030

Currently, the NZD/USD pair drops -0.16% to 0.7044, recovering from session lows reached at 0.7031 earlier today. The Kiwi makes fresh recovery attempts from three-day lows as upbeat tone around the commodity-currencies, in response to a stronger rally in the copper prices, supports the resource-linked NZD.

Moreover, stalled buying in the USD against its major peers also aids the recovery in the NZD/USD pair. While recovery lacks momentum amid non-existent appetite for risky/higher-yielding assets in wake of the Fed decision and impending Brexit worries.

The Kiwi also keeps losses as dismal Chinese dataflow weighs on the major. China is New Zealand’s top export destination. Next in focus for the major remains the US retail sales, NZ current account data and the FOMC decision, which will have significant impact on the prices.

NZD/USD Levels to consider

To the upside, the next resistance is located at 0.7052 (5-DMA), above which it could extend gains to 0.7078/0.7100 (daily S3/ round number). To the downside immediate support might be located at 0.7000 (June 9 Low) and from there to at 0.6943 (June 8 Low).