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NZD/USD headed to 0.7350 as NZ PPI underpins

NZD/USD headed to 0.7350 as NZ PPI underpins

The NZD/USD pair is seen extending their recovery from five-week lows in Asia this Thursday, now looking to take-out key resistances located near 0.7330 levels en route 0.7350 levels.

NZD/USD trades above 10-DMA at 0.7311

The Kiwi remains on the front foot this session, benefiting from broad based US dollar weakness and better-than expected NZ PPI data, which came in at 1.4% in the reported month versus 0.9% expected and 0.8% previous.

The greenback slumped across the board in the US last session, after the FOMC minutes showed that the FOMC members remained divided over the inflation outlook, raising doubts over future rate hike prospects.

Meanwhile, the renewed uptick seen in oil prices after the latest declines, also offered fresh impetus to the resource-linked NZD. Looking ahead, it remains to be seen if the upcoming US macro releases offer some respite to the USD bulls.

NZD/USD Levels to consider                                                                              

NZD/USD holds above 10-DMA at 0.7311, with 0.7287 (daily pivot) still guarding 0.7250 (psychological levels) and a break back below 0.7189 (100-DMA) are key near-term downside areas. To the topside, a test of 0.7348 (50-DMA) due on the cards, which could open doors towards 0.7382 (classic R2/ Fib R3).

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