NZD/USD extends the drop to 5-DMA

The NZD bulls ran into strong resistances just ahead of 0.73 handle, and from there extended its retreat to test 5-DMA support, now located at 0.7276.

NZD/USD tracks AUD lower

Currently, the NZD/USD pair wipes out gains and trades flat at 0.7282, having struck fresh daily lows at 0.7278 last hour.  The Kiwi failed once again to resist above 0.73 barrier and witnessed aggressive selling, largely on the back of broad selling across the commodity-currencies, with the major closely tracking the AUD lower. The Aussie is the worst performer amongst the resource-linked currencies so far this session.

Also, the US dollar picked-up significant strength against most of its major rivals, having staged a solid rebound from a steep drop led by renewed optimism spurred by the OPEC output deal announcement. The USD index rises +0.14% to 95.45, flirting with session tops printed at 95.50 in the last hour.

Nothing of note for the major until the NA session, with the US durable goods, pending home sales and Fed speaks due on the cards, which may provide some fresh impetus on the major.

NZD/USD Levels to consider

To the upside, the next resistance is located at 0.7304 (daily high), above which it could extend gains to at 0.7332 (Sept 27 high). To the downside immediate support might be located at 0.7267 (50-DMA) and from there to at 0.7220 (Sept 23 & 26 low).