NZD/USD clings to recovery gains above 0.7200

Renewed weakness behind the US dollar combined with positive Asian equities continue to underpin the sentiment around the NZD/USD, with the rate now trading in close proximity to the daily tops reached at 0.7218 last hour.

NZD/USD eyes NZ GDT price index

The Kiwi is seen reversing a small part of yesterday’s massive sell-off triggered by broad based US dollar rebound, after Treasury yields recovered sharply on the back of reports of the US debt-ceiling extension and solid US non-manufacturing PMI.

Moreover, renewed geopolitical concerns surrounding North Korea missile threat amid talks of new US sanctions and South Korea reported to have installed THADD launcher yesterday, dulled the attractiveness of the higher-yielding currency NZD a day before.

So far this Thursday, the spot also continues to find support from the cross-driven strength, as tumbling AUD/NZD on downbeat Aus retail sales and trade figures aides the recovery in NZD/USD.

Focus now shifts towards the US second-liner macro news and EIA oil inventories data for fresh impetus on the prices.

NZD/USD Levels to consider                                                                              

NZD/USD tested daily pivot at 0.7217, with 0.7195 (5-DMA) still guarding 0.7156 (200-DMA) and a break back below 0.7100 (round number) are key near-term downside areas. To the topside, a test of 0.7239/48 (20 & 100-DMA) due on the cards, which could open doors towards 0.7300 (Aug 29 high).