NZD/USD off 6-week lows, re-takes 0.7000

The retreat from 0.73 handle gained further traction in mid-Asia, sending NZD/USD sharply lower towards 0.7200 levels, with bulls completely ignoring higher oil prices.

NZD/USD bounces-off 100-DMA at 0.6947

Currently, the NZD/USD pair drops -0.48% to 0.6987, attempting to reclaim 0.70 handle. The Kiwi is making minor-recovery attempts on 0.69 handle, moving-off six-week troughs reached just ahead of 100-DMA barrier.

The seven-day slump in NZD/USD is largely on the back of increased speculation of a RBNZ rate cut at its August policy meeting, while doors remain open for further easing this year.

Moreover, the sell-off gained traction after the NZ CPI report showed that inflation in New Zealand was up 0.4% on year in Q2 2016, beneath forecasts for 0.5%, although it was unchanged from the previous three months. Next of note for the major remains the US dataflow, which may provide fresh impetus to the pair.

NZD/USD Levels to consider

To the upside, the next resistance is located at 0.7051 (5 & 50-DMA), above which it could extend gains to 0.7097 (daily R2). To the downside immediate support might be located at 0.6952/49 (multi-week low & 100-DMA) and from there to at 0.6900 (round figure).