NZD/USD: Strongest in Asia, eyes post-Christmas high

The NZD/USD pair snapped previous losses and resumed the recovery mode from multi-month lows amid broad based USD retreat and tumbling treasury yields.

NZD/USD: Has it found a bottom?

Currently, the NZD/USD pair jumps +0.51% to fresh daily tops of 0.6927, catching a fresh bid-wave on a break above 10-DMA at 0.6909. The Kiwi has emerged the best performer across the fx board so far this session, benefiting from fresh selling seen behind the US treasury yields, which makes the emerging market currency NZD a more attractive higher yielding asset.

Moreover, a broadly weaker US dollar combined with yesterday’s oil price-rally also adds to the ongoing bullish momentum in NZD/USD. Further, holiday-thinned trades continue to exaggerate the move in the spot. Attention now turns towards the US pending home sales data due later in the NA session.

NZD/USD Levels to consider

To the upside, the next resistance is located at 0.6935 (post-Christmas high), above which it could extend gains to 0.6991 (Dec 19 high) and from there to 0.7017 (20-DMA). To the downside immediate support might be located at 0.6885/76 (Dec 22 low/ daily S1) and from there to at 0.6850 (psychological levels), below which 0.6800 (zero figure) would be tested.