NZD/USD weaker, but supported near 0.7150

Broad based US dollar recovery extends into Europe amid risk-off markets, taking a toll on the NZD/USD pair amid central banks’ policy divergence.

NZD/USD hovers around 10-DMA

Currently, the NZD/USD pair trades -0.08% lower at 0.7160, unable to take on the recovery above 0.7170 levels. The NZD/USD pair remains under pressure as we head into Europe amid prevalent risk-off moods, in wake of tumbling stocks and oil prices.

Moreover, renewed demand for the greenback across the board also weighed somewhat on the Kiwi, as monetary policy divergence between the Fed and RBNZ continue to dampen the sentiment behind the NZD.

Meanwhile, the Kiwi failed to benefit from strong gains seen in its OZ counterpart, in response to upbeat  Aus CPI report, as focus now shifts towards the NZ trade balance figures lined up for release tomorrow.

NZD/USD Levels to consider

To the upside, the next resistance is located at 0.7190 (daily R1), above which it could extend gains to 0.7210 (100-DMA) and from there to 0.7239 (50-DMA). To the downside immediate support might be located at 0.7100 (round figure) and from there to at 0.7080 (key support), below which 0.7040/32 (200-DMA/Oct 13 low) would be tested.