NZD/USD trims losses, re-takes 0.7300 ahead of Fed, RBNZ

The NZD/USD pair staged a solid comeback and now regains 0.73 handle, as the bulls find support from rallying oil prices.

NZD/USD drops on profit-taking?

Currently, the NZD/USD pair trades -0.16% lower at 0.7301, reversing a dip to session lows struck at 0.7278. The bears take a breather as we head into early Europe, allowing a recovery in the NZD/USD pair.

The recovery in the spot is also on the back of higher oil prices, which lend support to the resource-linked NZD. While a retreat in the US dollar across the board, following USD/JPY-led rally in the buck.

Looking ahead, focus now shifts to the Fed and RBNZ interest rates decision, as dust settles over unimpressive NZ GDT price index data.

NZD/USD Levels to consider

To the upside, the next resistance is located at0.7350/55 (psychological levels/ daily R1), above which it could extend gains to at 0.7400 (round number). To the downside immediate support might be located at 0.7248 (50-DMA) and from there to at 0.7205 (daily S3).