NZD/USD capped below 200-DMA as China stocks waver

By FXStreet FXStreet (Mumbai) – The Kiwi pair oscillates back and forth within a 60-pips range, tracking wild swings seen in the Chinese equities.

NZD/USD recovers from 0.6616 – fresh lows

Currently, the NZD/USD pair rises 0.38% to 0.6652, bouncing-off fresh session lows reached at 0.6616 levels. The Kiwi faded a spike to 0.6679 highs and dropped sharply below 100-DMA at 0.6629 to reach daily lows after the initial rebound on the Chinese stocks was quickly reversed and the equities turned back in the red. Although the New Zealand dollar quickly regained lost ground somewhat and bounced-off lows to now trade around the mid-point of 0.66 handle. China’s benchmark, the Shanghai Composite index drops -0.90% versus +2.20% seen at open.

Moreover, the NZD/USD pair still keeps gains on the back of short-covering after four-back-to-back sessions of decline and also as markets reposition themselves ahead of the crucial NFP report from the US later today. However, the underlying downtrend in the Antipode remains strong on the back sustained weakness in oil prices and on renewed China slowdown fears.

NZD/USD Levels to consider

To the upside, the next resistance is located at 0.6676/79 (200-DMA/ daily high), above which it could extend gains to 0.6700 (round number) levels. To …read more

Source:: FX Street