NZD/USD – back above 50% Fibo, nears 50-DMA

NZD/USD pair shrugged off weak New Zealand data and moved back above 0.70 (50% of 0.6775-0.7325) levels. The spot now appears on track to test 50-DMA level of 0.7014 levels.

Turns higher from 0.6984

Kiwi dropped to a low of 0.6984 levels in early trade after the data in New Zealand showed a drop in the trade surplus. The drop in exports underscores weakness in the economy and only adds to the bets of RBNZ rate cut in August.

Still, the pair managed to turn higher and move above 50% Fibo level as said earlier. The currency pair was last seen trading around 0.7005 levels.

NZD/USD Technical Levels

A break above immediate hurdle of 0.7014 (50-DMA) could yield 0.7076 (38.2% of 0.6675-0.7325). A violation there would expose 0.71 handle. On the other hand, breach of support at 0.6984 (today’s low) would open doors for a drop to 0.6951 (July 21 low), under which losses could be extended to 0.6920 (100-DMA).