NZD/USD struggles to take on the recovery above 5-DMA

The New Zealand dollar treads water against its American counterpart in the Asian morning this Friday, keeping the NZD/USD pair largely flat-lined below 5-DMA located at 0.7255.

Currently, the NZD/USD pair trades almost unchanged at 0.7246, having found fresh bids near 0.7235 region once again. The NZD/USD pair is seen correcting a small portion of yesterday’s massive decline, although lacks follow-through, as calm appears to have spread across the financial markets ahead of the critical US Q4 advance GDP release.

The Kiwi failed to upbeat NZ CPI backed gains and came under heavy selling pressure amid broad based US dollar rebound from Trump and Mnuchin’s USD jawboning induced recent sell-off. Amid holiday-thinned markets, attention turns to the US dataflow due later today for further momentum on the spot.

NZD/USD Levels to consider

To the upside, the next resistance is located at 0.7255/56 (5-DMA/ daily high), above which it could extend gains to 0.7317 (10-week high) and from there to 0.7358 (daily R2). To the downside immediate support might be located at 0.7215 (10-DMA) and from there to at 0.7151 (200-DMA), below which 0.7104 (100-DMA) would be tested.