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NZD/USD back on the bids above 0.68, risk-on underpins

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Apr 6, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

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    The NZD bulls caught a fresh bid tone over the last hour, allowing NZD/USD to regain 0.68 barrier as the oil price rebound lifts overall market sentiment.

    NZD/USD re-attempts hourly 200-SMA at 0.6817

    Currently, the NZD/USD pair trades 0.05% higher at 0.6812, flirting with session highs printed at 0.6813 at Tokyo open. The Asian traders resorted to taking the yield advantage amid a rebound seen in the oil and stock markets, and thereby lifted the bids for the higher-yielding currency NZD.

    Moreover, markets appear to ignore the bearish GDT price index and cheer the latest NZ house prices data, which continued to rise in March. Residential property values across the country rose an average 11.4% y/y in March, Quotable Value (QV) figures showed on Wednesday.

    However, the bulls struggle to extend to the upside as the US dollar stages a minor pullback against its major competitors, with the DXY rising to the tune of 0.12% at 94.72. Looking ahead, markets now look forward to the EIA crude oil inventory report ahead of the crucial FOMC minutes for further momentum.

    NZD/USD Levels to consider

    To the upside, the next resistance is located at 0.6841/50 (5-DMA/ psychological levels), above which it could extend gains to 0.6900 (round number). To the downside immediate support might be located at 0.6721/04 (50-DMA/ daily S3) and from there to 0.6682 (100-DMA).
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