NZD/USD consolidates around 20-DMA, RBNZ eyed

By FXStreet FXStreet (Mumbai) – The NZD/USD pair is seen clinging to the strong support placed at 0.6720, although fails every attempt to rise above 0.6740 since late-Asian trades.

NZD/USD: Bulls lined up at 0.6720

Currently, the NZD/USD pair drops -0.50% to 0.6730, hovering in a 20-pips tight range in the European session. The downside in the Kiwi remains cushioned on the back of expectations that the RBNZ will keep rates-on hold while the relief rally seen in oil prices also offers some respite to the resource-linked NZD.

The bird dropped sharply in Asia, tracking the massive slump witnessed in the AUD/USD pair following the release of below estimates Australia’s CPI figures. While the cautious trades ahead of the Fed outcome also weighs on the demand for higher yielding currencies.

NZD/USD Levels to consider

To the upside, the next resistance is located at 0.6776/79 (today’s high + daily pivot), above which it could extend gains to 0.6800 (round number) levels. To the downside immediate support might be located at 0.6719 (today’s low) below that 0.6673 (daily S3).
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Source:: FX Street