NZD/USD: Post-RBNZ recovery remains capped by 0.7300

The NZD/USD pair witnessed a volatile start to the Asian session this Thursday, now reversing a part of post-RBNZ dip in a bid to regain 0.73 handle and beyond.

NZD/USD back around 10-DMA at 0.7291

Currently, the NZD/USD pair advances +0.15% to 0.7290, having posted session lows at 0.7272 post-RBNZ action. The Kiwi quickly faded the entire knee-jerk upward spike above 0.73 handle reached post-RBNZ rate cut decision, as comments from RBNZ Governor Wheeler on likely intervention, weighed heavily on the prices. RBNZ cuts its cash rate by 25 bps to 1.75%, as widely expected and left doors open for more easing in the future.

However, the bulls regained poise and drove the major back on the bids as sentiment remains lifted on a strong rebound seen in commodity prices and persistent risk-on trade, as markets seem more optimistic on Trump’s reform plans than before pre-elections.

Moreover, a minor correction in the USD against its main peers, also appears to lend some support to NZD/USD. Focus now shifts back towards fundamentals, with the US jobless claims and Fed speaks due later in the NA session.

NZD/USD Levels to consider

To the upside, the next resistance is located at 0.7301 (daily high), above which it could extend gains to 0.7350 (key resistance) and from there to 0.7372 (Sept 22 high). To the downside immediate support might be located at 0.7300 (key support) and from there to at 0.7260 (Nov 9 low), below which 0.7223/17 (50 & 100-DMA) would be tested.

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