NZD/USD: Supplying capping minor-recovery, eyes on RBNZ

The Kiwi moved-off lows and jumped back on the bids in the mid-Asian session, as uncertainty around Trump’s administration policies continues to cap any pullbacks in the US dollar versus its main competitors.

Currently, the NZD/USD pair rises +0.12% to 0.7306, having posted a daily high at 0.7318 and a day’s low at 0.7286. The major appears to trade quite choppy amid mixed sentiment and nervous markets, as Trump headlines continue to flow into Asia, while traders refrain from placing any directional bets on the major ahead of the RBNZ monetary policy decision due tomorrow.

The spot maintains the bid tone also in response to recent upbeat NZ fundamentals, with higher GDT prices, upbeat inflation expectations as well as NZ Treasury’s economic report. Moreover, markets seek to take the yield advantage in the NZD amid weaker treasury yields and softer equities, in wake of Trump’s policies.

NZD/USD Levels to consider

To the upside, the next resistance is located at 0.7318 (daily high & pivot), above which it could extend gains to 0.7359 (daily R1) and from there to 0.7400 (zero figure). To the downside immediate support might be located at 0.7258 (20-DMA) and from there to at 0.7219 (daily S2), below which 0.7200 (zero figure) would be tested.