NZD/USD stages solid comeback, re-takes 0.7100

The offered tone around the USD keeps growing bigger in mid-Asia, further fueling the recovery in NZD/USD towards 0.7100 levels.

NZD/USD swings back to test 5-DMA a 0.7123

Currently, the NZD/USD pair jumps +0.48% to 0.7089, hovering close to fresh session highs previously posted at 0.7095. The NZD/USD pair staged a solid rebound from three-month troughs, mainly driven by a short-covering rally after the recent sell-off.

Moreover, a minor-correction in the US dollar across the board ahead of the FOMC minutes, also lends support to the recovery in the Kiwi. Further, easing Hard-Brexit fears and some improvement in the risk sentiment also underpinned the sentiment around the major.

Amid a lack of significant fundamental drivers due later in the day, all eyes remain on the Fed speaks and FOMC meeting minutes for further momentum on the pair.

NZD/USD Levels to consider

To the upside, the next resistance is located at 0.7100 (round figure), above which it could extend gains to 0.7123 (5-DMA) and from there to 0.7170 (10-DMA). To the downside immediate support might be located at 0.7050 (psychological levels) and from there to at 0.7011 (200-DMA), below which 0.6955 (multi-month lows) would be tested.'