NZD/USD reverses a spike above 0.7300, NZ GDT eyed

Having failed once again to sustain above 0.73 handle, the NZD/USD pair dropped sharply to the 20-DMA support at 0.7285, where it now wavers.

NZD/USD well bid amid improved sentiment

Currently, the NZD/USD pair rises 0.19% to 0.7289, trying hard to regain 0.73 barrier. Despite a better risk tone prevalent in the markets, the higher-yielding NZD trims gains as the US dollar extends its bullish momentum, in wake of yesterday’s auspicious US economic data.

The Kiwi hovers around 20-DMA and awaits fresh impetus from the sentiment on the European equities, while oil prices trade lack-luster, which offers little support to the commodity-currency.

Attention now turns towards the dairy auction results published fortnightly by Fonterra later on the day, while we have a data-empty US calendar today.

NZD/USD Levels to consider

To the upside, the next resistance is located at 0.7311 (daily high), above which it could extend gains to 0.7332 (Sept 27 high) and from there to 0.7350. To the downside immediate support might be located at 0.7220 (Sept 23 & 26 low) and from there to at 0.7201 (100-DMA), below which 0.7164 (Aug 15 low) would be tested.