NZD/USD unperturbed by lower Oil, 50-DMA tested

The recovery in NZD/USD from 0.6950 region gained further traction last hour, triggering a fresh rally in the prices to hit fresh five-day highs at 50-DMA now placed at 0.7075.

NZD/USD eyes 0.7100

Currently, the NZD/USD pair rallies +1.21% near fresh five-day peaks posted at 0.7086 levels. The bid tone around the NZD grew bigger all of a sudden, taking the prices further beyond 0.7050 barrier, in an effort to regain 0.71 barrier.

The NZD/USD pair recovers almost a quarter of the RBNZ rate cut expectations-led slump and now looks to accelerate further to the upside largely on the back of a profit-taking rally as markets resort to repositioning ahead of the crucial Fed decision due tomorrow.

Meanwhile, the Kiwi remains strongly bid amid broad based USD weakness, as markets continue to cheer slightly upbeat NZ trade data released earlier on the day. Next in focus remains the US dataflow due later in the NA session.

NZD/USD Levels to consider

To the upside, the next resistance is located at 0.7100 (round number), above which it could extend gains to 0.7120 (Jul 19 high). To the downside immediate support might be located at 0.6960 (100-DMA) and from there to at 0.6900 (round figure).