NZD/USD nears 0.73 handle amid risk-on rally

Kiwi’s rebound from 50-DMA support on Monday has been extended further to 0.7295 levels amid broad based risk-on rally in the financial markets.

Guided by broader market sentiment

Broader market sentiment has turned back in favor of the riskier assets given Presidential candidate Donald Trump underperformed during the first Presidential debate. Trump is widely seen as bad for the markets.

The spot did benefit from the surge in risk sentiment, but is having a tough time holding on to gains above 0.7291 (10-DMA). The pair was last seen trading around 0.7284 levels.

On a slightly larger scheme of things, Kiwi is yet to recover sharp fall from 0.7315 seen on Friday. Dovish hints from RBNZ last week could make it difficult for the pair to climb stairs further.

NZD/USD Technical Levels

Acceptance above 10-DMA level of 0.7291 could see the spot test supply around 0.7334 (38.2% of 0.4891-0.88425) – 0.7450 (monthly 100-MA). A day end close above the same would open up upside towards 0.7673 (monthly 50-MA). On the other hand, retreat below 0.7260 (daily low) could yield 0.7231 (50-DMA) and 0.72 levels.