New Zealand quake: NZD/USD fades drop to 0.7060

The NZD/USD pair backed-off from the session highs after the USGS said an earthquake of magnitude 5.6 hit 122 KM from Palmerston North, New Zealand.

Back to square one

The spot rose to a high of 0.7084 earlier today before falling to 0.7067 on earthquake news.

Earlier today, a 7.4 magnitude earthquake in Japan prompted Tsunami warning. As per the latest updates, the risk of a Tsunami has diminished, but aftershocks could be felt.

As far as markets are concerned, the post-Japanese earthquake risk-off has been reversed. The NZD/USD pair is back near 0.7080 as well.

NZD/USD Technical Levels

A break below the session low of 0.7065 would open doors for a drop to 5-DMA level of 0.7051. Further losses could run into support at 0.70 handle. On the higher side, breach of resistance at 0.71 could yield a rally to 0.7133 (Oct 14 high) and 0.7184 (Oct 26 high).