NZD/USD recovery limited by 0.6930

NZD/USD rose during the Asian session but then trimmed gains as the US dollar strengthened afterward across the board. 

The pair peaked at 0.6929, the highest level since last Wednesday. Then pulled back to 0.6895 but quickly rose back above 0.6900. It was trading at 0.6912/14, up 35 pips from yesterday’s closing price. 

The kiwi is the top performer among commodity currencies. It is rising particularly against the Aussie. AUD/NZD bottomed today at 1.0371, the lowest level since November 8. 

NZD/USD levels to watch

Today the pair is experiencing a recovery but still remains near multi-month lows that reached last week at 0.6861. The recent recovery was capped by 0.6930, a break higher could lead to a test of 0.6950 and then, the next resistance area is seen around 0.6970/75. 

To the downside, a consolidation under 0.6900 would remove bullish momentum from the kiwi. Support levels might be seen at 0.6880 (daily low), 0.6860 (Dec low) and 0.6845 (May 10 & 11 high).