NZD/USD off-highs, gravitates around 10-DMA

After a flat close yesterday, the New Zealand dollar extends its side-ways momentum against its US counterpart in the Asian session, with the NZD/USD pair now trading at yesterday’s closing price.

NZD/USD fades a spike to 0.7075

Currently, the NZD/USD pair trades dead flat at 0.7062, testing daily lows struck previously at 0.7057. The Kiwi stalled its overnight recovery at 0.7075 levels and now reverts to the familiar range near 10-DMA at 0.7063 in absence of fresh fundamental triggers amid a holiday-thinned Asian session.

However, the downside in the NZD/USD pair remains limited amid subdued trading activity seen around treasury yields and a broadly muted US dollar, while on the other side, further recovery lacks momentum amid mixed markets as nervousness sets in ahead of the FOMC minutes release due later in the American afternoon.

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 0.7150/53 (psychological levels/ daily R3) and from there to 0.7171 (20 & 50-DMA). To the downside immediate support might be located at 0.7041 (5-DMA) and from there to at 0.7000 (zero figure), below which 0.6970 (daily S3) would be tested.

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