NZD/USD capped below 0.6850 on lower commodities

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Dec 28, 2015.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    FXStreet (Mumbai) - The Kiwi pair emerged the strongest among the commodity-currencies and remained on the bids during the European session, despite the sell-off seen across the commodities’ space.

    NZD/USD consolidating above 0.68 handle

    Currently, the NZD/USD pair trades 0.07% higher at 0.6833, unable to break through 0.6843/45 resistance zone. The Kiwi maintains the bid tone this session, although strives hard to extend its last week’s winning streak as falling oil and metals’ prices continue to dent the sentiment around the resource linked-NZD. The US oil is losing nearly 1% while copper prices are down -1.10%. Gold prices are seen moderately lower around 1071 levels.

    More so, poor appetite for higher yielding currencies amid negative European equities and lack of fresh fundamental flow caps the gains in NZD/USD. On the other hand, broad based US dollar weakness continues to provide the much-needed support to the pair. The USD index drops -0.15% to 97.87.

    Meanwhile, attention turns towards tomorrow’s macro updates from the US as we progress towards a data-empty NY session ahead.

    NZD/USD Levels to consider

    To the upside, the next resistance is located at 0.6845 (daily high), above which it could extend gains to 0.6893 (Dec 25 High) levels. To the downside immediate support might be located at 0.6803 (1h 100-SMA) below that 0.6775 (1h 200-SMA).
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