NZD/USD sits above 100-DMA on solid jobs, milk prices

The NZD/USD pair is seen flirting with almost two-week tops in the Asian hours, as the NZD received double booster shot from solid NZ employment and GDT price data.

NZD/USD tests 50-DMA at 0.7226 

Currently, the NZD/USD pair climbs 0.42% to 0.7216, hovering within a striking distance of daily highs previously posted at 0.7222. The NZD/USD pair keeps the bid tone intact and remains largely unperturbed by persisting risk-off markets, as stronger-than expected NZ labor market report combined with a solid rise in the milk prices, ease RBNZ Nov rate cut expectations somewhat, and therefore offer support to the NZD bulls.

Moreover, ongoing weakness surrounding the US dollar across the board, after a latest poll showed Trump leading the US presidential elections race, also adds to the strength behind NZD/USD.

Focus now remains on the NZ inflation expectations data due out shortly ahead of the US ADP jobs report, EIA crude inventory data and FOMC statement for further momentum.

NZD/USD Levels to consider

To the upside, the next resistance is located at 0.7226 (50-DMA), above which it could extend gains to 0.7250 (psychological levels) and from there to 0.7269 (Oct 20 high). To the downside immediate support might be located at 0.7176 (5-DMA) and from there to at 0.7146 (20-DMA), below which 0.7123 (daily S2) would be tested.