NZD/USD rebounds towards 100-DMA on upbeat NZ budget forecasts

By FXStreet The NZD/USD pair quickly bounced-off a brief dip below 0.67 barrier and now extends recovery after NZ Govt budget forecasts for 2016/17 flipped to surplus and boosted the bids for the local currency.

NZD/USD eyes 100-DMA at 0.6739

Currently, the NZD/USD pair trades -0.22% lower at 0.6724, revering a dip to 0.6696 reached in the last hour. The Kiwi found fresh bids just below 0.67 handle and embarked upon the recovery mode as the NZ government lifted its budget forecasts and noted a surplus of NZD719mn versus the prior forecast for a deficit of NZD401 million in the December half-year economic and fiscal report.

However, further upside appears capped as the persisting risk sentiment comes under pressure, with the Asian equities receding gains in tandem with oil prices. Markets now look forward to the crucial US durable goods data due later today for fresh cues on the USD moves, while speeches from Fed officials Bullard and Powell will be also closely heard.

NZD/USD Levels to consider

To the upside, the next resistance is located at 0.6739/66 (100 & 10-DMA), above which it could extend gains to 0.6800 (round number). To the downside immediate support might be located at 0.6664 (round number/ 200-DMA) and …read more

Source:: FX Street