NZD/USD consolidates above 0.73 ahead of US elections, RBNZ

The NZD/USD pair extends its bullish consolidation phase above 0.73 handle into a fourth-day today, as markets await the outcome of US elections and RBNZ decision for next direction.

NZD/USD remains capped below 0.7350

Currently, the NZD/USD pair drops -0.20% to 0.7330, retreating slightly from session lows struck at 0.7318 post-China data. The major is on a minor-recovery mode from a brief downward spike witnessed in a knee-jerk reaction to weak Chinese trade data. New Zealand is highly dependent on China for its exports.

While investors are unwinding their NZD longs ahead of the US elections, particularly after the bulls once again ran into key resistance lined up near 0.7350 levels. Further, cautious tone prevails around the Kiwi as attention turns back towards fundamentals, with divergent monetary policy outlooks gaining back importance ahead of Thursday’s RBNZ rate decision.

NZD/USD Levels to consider

To the upside, the next resistance is located at 0.7350 (key resistance), above which it could extend gains to 0.7372 (Sept 22 high) and from there to 0.7400 (round figure). To the downside immediate support might be located at 0.7300 (key support) and from there to at 0.7260 (10-DMA), below which 0.7212 (100 & 20-DMA) would be tested.

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