NZD/USD: bears checked at 0.7080 support after strong OPEC lead supply

Currently, NZD/USD is trading at 0.7088, up 0.10% on the day, having posted a daily high at 0.7091 and low at 0.7079.

Oil intermarket: DXY to remain a positive correlation for a while?

NZD/USD has stabilized after a session of supply with the greenback taking back the top-spot as inflationary concerns grip the markets with oil rallying over 9% post the OPEC surprise accord confirmed overnight. The kiwi dropped from 0.7168 to aforementioned lows and last night's fall has checked the NZD's multi-day rally, leaving it in a neutral state today around 0.7080, argued analysts at Westpac who offered NZD/USD in a 1-3 month outlook as follows:

"The US dollar has had an impressive rise since the US election and has potential to rise further during the months ahead, not least because the Fed will probably hike in December. Against that, the NZ economy is strong and dairy prices have risen. Overall we are left with a bearish outlook for NZD/USD, targeting sub-0.70." 

NZD/USD levels

Spot is presently trading at 0.7088, and next resistance can be seen at 0.7091 (Daily High), 0.7097 (Weekly Classic R1), 0.7105 (Hourly 20 EMA), 0.7109 (Daily Classic PP) and 0.7109 (Daily 20 SMA). Support below can be found at 0.7084 (Daily Classic S1), 0.7081 (Daily Open), 0.7079 (Daily Low), 0.7077 (Hourly 100 SMA) and 0.7070 (Yesterday's Low).