NZD/USD off-lows, but capped below 0.7300

The NZD/USD pair stalled its overnight sell-off from multi-week highs, and now attempts a tepid-bounce to reclaim 0.73 handle amid mixed Asian session.

NZD/USD keeps the red as Oil slips

Currently, the NZD/USD pair drops -0.14% to 0.7280, having failed several attempts to retest 0.73 barrier. The Kiwi failed to sustain above 0.7300 levels in Asia, with fresh offers hitting the NZD after the NZ trade balance data showed that the deficit expanded more than expected.

Meanwhile, markets resorted to profit-taking after the major reached three-week highs yesterday, in response to RBNZ Governor Wheeler’s hawkish comments. While fresh selling seen in the oil prices also collaborated to downbeat sentiment around the resource-linked NZD.

All eyes now remain on the US crude oil inventories and existing home sales data amid a fairly quiet economic calendar today.

NZD/USD Levels to consider

To the upside, the next resistance is located at 0.7300 (round number), above which it could extend gains to at 0.7339/46 (daily R1/ 3-week tops). To the downside immediate support might be located at 0.7260 (10-DMA) and from there to at 0.7218 (20-DMA).