NZD/USD: Bulls defending 0.63 handle

By FXStreet FXStreet (Mumbai) – The New Zealand dollar halted the previous downslide and edged higher versus its American counterpart in the mid-Asian trades, with NZD/USD wavering above 0.63 handle.

NZD/USD capped by 5-DMA

Currently, the NZD/USD pair trades 0.18% higher at 0.6301, retracing from 0.6319 highs reached in overnight trades. The Kiwi extends its gradual recovery mode in the Asian session as traders resorted to profit-taking on the last trading day of the week after the recent weakness.

The kiwi dropped over 100 pips on Thursday after the RBNZ slashed the OCR to 3% and also talked down the currency, citing that further depreciation in the NZD level is ‘appropriate, given the sharpness of the decline in New Zealand’s export commodity prices’.

Looking ahead, the pair will be influenced by a set of US macro data, including the PPI and prelim consumer sentiment figures, to be reported later in the New York session.

NZD/USD Levels to consider

To the upside, the next resistance is located at 0.6400 (Sept 10 High) levels and above which it could extend gains 0.6481 (Aug 31 High) levels. To the downside immediate support might be located at 0.6268 (Sept 4 Low) below that at 0.6241 (Sept 7 Low).
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Source:: FX Street