NZD/USD extending the upside above 50-DMA, NZ GDT eyed

The NZD bulls retain control in the Asian session, propelling NZD/USD to extend yesterday’s rally above 50-DMA, now located at 0.7140.

NZD/USD eyes multi-week tops

Currently, the NZD/USD pair advances +0.14% to trade near daily highs of 0.7157, after having found solid support near 50-DMA region. The Kiwi remains well bid and attempts another run to take-out multi-week highs reached last week at 0.7171 levels, as the bulls remain underpinned by ongoing weakness seen around the US dollar against its main rivals.

However, further upside appears limited in the higher-yielding currency, as risk-off trades seep back into markets amid fresh selling in the Asian equities paring gains and oil prices.

The spot will get influenced by broader market sentiment ahead of the US dataflow, while NZ GDT price index will have a significant impact on the Kiwi ahead of tomorrow’s RBNZ Governor Wheeler’s speech.

NZD/USD Levels to consider

To the upside, the next resistance is located at 0.7171 (multi-week high), above which it could extend gains to 0.7208 (100-DMA) and from there to 0.7250 (psychological levels). To the downside immediate support might be located at 0.7121 (daily pivot/ 5-DMA) and from there to at 0.7098 (10-DMA), below which 0.7073 (20-DMA) would be tested.