NZD/USD reverses a spike to 0.7115

A sudden bid-wave caught by the NZD/USD pair in early trades lost legs near 0.7120 region, now pushing its lower below 0.71 handle.

NZD/USD back below 0.71 handle

Currently, the NZD/USD pair trades +0.28% higher at 0.7096, having failed to hold above 0.71 barrier. The Kiwi ran through fresh offers above 0.71 handle and eased-off highs as the greenback attempts a minor-recovery against its major peers from FOMC-backed slump.

Moreover, the gains in the Kiwi remain capped on account of weaker Asian stocks as the investors were left disappointed by Fed’s inaction and lack of clear hints on the Fed rate hike prospects this year.

Looking ahead, there is nothing of note for the major in terms of economic releases today, except for the US weekly jobless claims. Hence, focus shifts towards tomorrow’s NZ building consents data and BOJ policy decision for fresh momentum on the major.

NZD/USD Levels to consider

To the upside, the next resistance is located at 0.71285 (20-DMA), above which it could extend gains to 0.7150 (psychological levels). To the downside immediate support might be located at 0.7046/42 (5 & 10-DMA) and from there to at 0.7000 (round figure).