NZD/USD unfazed by earthquake, on its way to 0.7100

The NZD/USD pair regained momentum and now reverts towards 0.71 handle amid a generalized risk-on environment, which usually favors higher-yielding currencies such as the NZD.

NZD/USD holds above 10-DMA

Currently, the NZD/USD pair advances +0.23% to 0.7081, flirting with daily highs reached at 0.7086 some minutes ago. The Kiwi quickly recovered from the NZ earthquake-led dip to near 0.7070 region as markets sought to take advantage from the persisting risk-on sentiment, which boosts the demand for the risk/ higher-yielding currency - NZD.

Also adding to the renewed buying interest around the major, the US dollar trades largely subdued against its main peers, while ongoing rally in oil prices also buoys the sentiment around the Antipodean.

Earlier on the day, an earthquake with 6.3 magnitude hit New Zealand’s Northern Island, although limited impact was seen on the spot following the earthquake.

Looking ahead, markets now await the US macro news and FOMC minutes for fresh impetus on the prices.

NZD/USD Levels to consider

To the upside, the next resistance is located at 0.7100/04 (round number/ daily R1), above which it could extend gains to 0.714/502 (daily R2/ psychological levels) and from there to 0.7177 (20 & 50-DMA). To the downside immediate support might be located at 0.7057 (daily low) and from there to at 0.7037 (5-DMA), below which 0.7000 (zero figure) would be tested.