NZD/USD re-takes 0.6800 amid improved risk sentiment

The NZD/USD pair halted its overnight downslide and swung back higher heading into the mid-Asian trades as appetite for risky assets improves as Asia turns risk-on.

NZD/USD bounces-off lows near 5-DMA

Currently, the NZD/USD pair trades -0.28% lower at 0.6793, reversing a dip to 0.6781 session lows, where 5-DMA intersects. Having tested 0.6850 levels a day before, the bird dived into losses in the overnight trades as the US dollar picked-up significant strength across the board on beating estimates US CPI figures, while poor NZ PPI datasets also weighed down on the Kiwi.

The Input Producer Price Index (PPI) fell 1.0% during the March quarter, against expected 0.3% rise in the first quarter. The Output PPI fell 0.2% in the first quarter, following a decline of 0.8% in the October.

Markets now await the FOMC minutes due later today for further cues on the major. In the meantime, the major will continue to track the broader market sentiment.

NZD/USD Levels to consider

To the upside, the next resistance is located at 0.6800 (round number), above which it could extend gains to 0.6848/57 (50 & 20-DMA). To the downside immediate support might be located at 0. 6725 (100-DMA) and from there to at 0.6657 (200-DMA).