NZD/USD post-RBNZ rally almost reversed, 0.7000 closer

The selling interest behind the NZD gathered steam over the last hour, knocking-off NZD/USD pair from above the mid-point of 0.70 handle as oil prices fell further into losses amid widespread risk-aversion.

NZD/USD eyes 10-DMA at 0.7008

Currently, the NZD/USD pair drops -0.48% to 0.7028, languishing near fresh four-day lows struck at 0.7023 in the last hour. The Kiwi remains heavily offered in the Asian trading, as markets remain on the back foot and ignore risky assets amid lingering Brexit concerns, which triggered fresh risk-aversion wave across the financial markets. The Asian equities extended previous sell-off, with ASX 200 smashed -2.08%, while the Nikkei 225 index sinks -1.42%.

Moreover, the ongoing weakness surrounding oil prices also collaborates to the bearish tone seen in the resourced-linked Kiwi. While a recent series of weaker Chinese economic releases also keeps the NZD/USD pair under pressure. China is New Zealand’s biggest trading partner.

Markets now await the US retail sales data for further impetus on the US dollar, while the FOMC 2-day meeting begins today, with the outcome due out on Wednesday. While NZ current account data coupled with GDT price index will be also closed watched for further momentum.

NZD/USD Levels to consider

To the upside, the next resistance is located at 0.7056/64 (5-DMA/ daily high), above which it could extend gains to 0.7100/01 (round number/ daily S2). To the downside immediate support might be located at 0.7000 (June 9 Low) and from there to at 0.6943 (June 8 Low).