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17 Jul 2015
NZD/USD: Bulls offered respite, in highs near 0.6540
FXStreet (Mumbai) - The New Zealand dollar halted its downslide and rebounded versus the American dollar in mid-Asia, lifting NZD/USD to highs beyond 0.65 handle. The Kiwi bounced-off lows and edged higher largely driven by a short-covering rally following the recent slump to a new six-year low on Thursday.
NZD/USD supported at 0.6519
Currently, the NZD/USD pair trades higher by 0.40% at fresh session highs of 0.6540, rebounding from session lows reached at 0.6519. The Kiwi posed a minor rebound in Asia, as the bears took a breather in its downward spiral as traders resorted to locking-in gains after the NZD/USD pair reached a fresh multi-year trough just below 0.65 handle on Thursday.
The Kiwi slumped to its lowest level since August 2009 on prospects that the Reserve Bank of New Zealand (RBNZ) will most likely cut interest rates at its meeting next week following softer inflation figures and Wednesday falling Fonterra’s dairy auction prices.
Meanwhile, markets turn their focus towards key US CPI figures due for release later today amid a rather quiet European calendar ahead.
NZD/USD Levels to consider
To the upside, the next resistance is located at 0.6571 (July 16 High) levels and above which it could extend gains to 0.6600. To the downside immediate support might be located at 0.6519 (Today’s Low) below that at 0.6499 (July 16 Low) levels.
NZD/USD supported at 0.6519
Currently, the NZD/USD pair trades higher by 0.40% at fresh session highs of 0.6540, rebounding from session lows reached at 0.6519. The Kiwi posed a minor rebound in Asia, as the bears took a breather in its downward spiral as traders resorted to locking-in gains after the NZD/USD pair reached a fresh multi-year trough just below 0.65 handle on Thursday.
The Kiwi slumped to its lowest level since August 2009 on prospects that the Reserve Bank of New Zealand (RBNZ) will most likely cut interest rates at its meeting next week following softer inflation figures and Wednesday falling Fonterra’s dairy auction prices.
Meanwhile, markets turn their focus towards key US CPI figures due for release later today amid a rather quiet European calendar ahead.
NZD/USD Levels to consider
To the upside, the next resistance is located at 0.6571 (July 16 High) levels and above which it could extend gains to 0.6600. To the downside immediate support might be located at 0.6519 (Today’s Low) below that at 0.6499 (July 16 Low) levels.