NZD/USD: Bulls back in control, 0.7100 – a whisker away

After a brief phase of consolidation in overnight trades, the New Zealand dollar regained footing versus its American counterpart, driving the rate sharply higher in a bid to reclaim 0.71 handle.

NZD/USD extends’ Friday’s rebound

Currently, the NZD/USD pair advances +0.59% to trade near fresh weekly highs of 0.7090 reached last hour. The Kiwi caught a fresh bid-wave post-Tokyo open, mainly driven by stabilizing oil prices, while the bulls seem to have ignored a minor-recovery in the US dollar against its main competitors.

Additionally, optimistic remarks by New Zealand PM Key on the budget surplus earlier on the day, also lent support to the recovery in NZD/USD.

The NZD/USD pair dipped to 0.7035 region in early trades after oil extended losses on the back of fears surrounding OPEC accord in Vienna this week.

The OPEC’s output cut deal due on Wednesday was put in danger after fresh indifferences cropped up between Iran and Saudi Arabia last Friday, while weekend’s comments from the Saudi Arabian oil minister Al-Falih also dented the sentiment around oil markets.

NZD/USD Levels to consider

To the upside, the next resistance is located at 0.7100 (zero figure), above which it could extend gains to 0.7121 (20-DMA) and from there to 0.7153 (50-DMA). To the downside immediate support might be located at 0.7037/36 (5 & 10-DMA) and from there to at 0.7000 (key support), below which 0.6949 (July low) would be tested.

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