NZD/USD consolidates post-GDP rally below 0.7100

The post- GDP rally in NZD/USD appears to lose strength over the last hour, sending the prices slightly lower as risk-off intensifies in Asia.

NZD/USD retreating towards 5-DMA at 0.7050

Currently, the NZD/USD pair advances +0.48% and now hovers near post-GDP lows reached at 0.7066. The Kiwi stalled its bullish run and now consolidates strong gains induced by upbeat NZ Q1 GDP figures. NZ 2016 Q1 GDP bettered expectations, coming in at +0.7% q/q vs +0.5% estimates and +0.9% last, while  Q1 GDP  y/y  stood at +2.8% vs 2.6% expected and 2.3% prior.

Moreover, optimistic remarks from NZ FinMin Bill English delivered earlier today also keep the Kiwi pair underpinned. However, the Kiwi meets fresh supply on deteriorating market conditions as the Asian equities come under pressure amid tumbling oil prices. Further, upside looks limited as unimpressive NZ GDT price index continues to weigh on the sentiment around the NZD.

Later today, persistent USD weakness may continue to lend support to the pair ahead of the US CPI report lined up for release in the NA session. The US dollar lost ground across the board after the FOMC kept rates on-hold, while came out more dovish than expectations.

NZD/USD Levels to consider

To the upside, the next resistance is located at 0.7088 (daily top), above which it could extend gains to 0.7100/25 (round number/ daily R2). To the downside immediate support might be located at 0.7050/32 (5 & 10-DMA) and from there to at 0.7000 (June 9 Low).