21 Jul 2015
NZD/USD extends recovery to 0.6600
FXStreet (Mumbai) - The New Zealand dollar extends its recovery mode versus the American dollar in the mid-Asian session, now lifting NZD/USD to fresh session highs near 0.66 handle. The Kiwi was strongly bid in Asia as markets continued to digest the country's Prime Minister John Key comments delivered on Monday in absence of any significant macro data for the pair in the day ahead.
NZD/USD flirts with 0.66 handle
Currently, the NZD/USD pair trades higher by 0.55% at 0.6602, hovering close to fresh session highs reached at 0.6606 some minutes ago. The Kiwi tries hard to recover from six-year trough reached last week and remains firmer this session as traders resorted to profit-taking after the recent slump while NZ PM’s comments on Monday citing that the recent fall in the currency may have gone too far, also lends a helping hand to the NZD bulls.
However, the rebound in NZD/USD is expected to be short-lived as divergent monetary policy outlook between the Fed and the Reserve Bank of New Zealand (RNBZ) is likely to keep the New Zealand dollar undermined. The RBNZ is widely expected to trim the rates further on Thursday.
Meanwhile, markets turn their focus towards Thursday’s RBNZ cash rate statement for further momentum on the pair while US dollar moves are likely to influence the pair in the day ahead.
NZD/USD Levels to consider
To the upside, the next resistance is located at 0.6609 (July 20 High) levels and above which it could extend gains to 0.6650. To the downside immediate support might be located at 0.6574 (Today’s Low) below that at 0.6503(July 20 Low) levels.
NZD/USD flirts with 0.66 handle
Currently, the NZD/USD pair trades higher by 0.55% at 0.6602, hovering close to fresh session highs reached at 0.6606 some minutes ago. The Kiwi tries hard to recover from six-year trough reached last week and remains firmer this session as traders resorted to profit-taking after the recent slump while NZ PM’s comments on Monday citing that the recent fall in the currency may have gone too far, also lends a helping hand to the NZD bulls.
However, the rebound in NZD/USD is expected to be short-lived as divergent monetary policy outlook between the Fed and the Reserve Bank of New Zealand (RNBZ) is likely to keep the New Zealand dollar undermined. The RBNZ is widely expected to trim the rates further on Thursday.
Meanwhile, markets turn their focus towards Thursday’s RBNZ cash rate statement for further momentum on the pair while US dollar moves are likely to influence the pair in the day ahead.
NZD/USD Levels to consider
To the upside, the next resistance is located at 0.6609 (July 20 High) levels and above which it could extend gains to 0.6650. To the downside immediate support might be located at 0.6574 (Today’s Low) below that at 0.6503(July 20 Low) levels.