NZD/USD: bulls in control, 0.7080 eyed

Currently, NZD/USD is trading at 0.7010, up 0.03% on the day, having posted a daily high at 0.7018 and low at 0.7004.

NZD/USD, in a similar fashion but to a slightly lesser extent, is performing on the bid and milking the benefits from last week's jawboning of the US dollar from Trump and the surprise miss in the US CPI data. Even despite the support for the greenback during the US session overnight, the bird clung onto the 0.70 handle in a reversal of late March's 0.7089 sell-off to 0.6908.

Forex today: dollar corrects in an improved risk-on session

The bid in the dollar and uptick in US yields came when US Treasury Secretary Steve Mnuchin said that he still expects a tax deal in 2017 while stressing the longer term benefits of dollar strength.  This came in contrast to Trump's complaining about the dollar's strength was catching the market off-guard last week. Trump argued that the "strong dollar" was hampering the competitiveness of US firms.

NZD/USD levels

The 0.7030 area and 16th April highs of 0.7035 guard 0.7080 resistance after the 200-d ema (0.7060). There is a double bottom at 0.7130 as the mid-Feb lows.  On the downside, 0.6933/50 and 13th March resistance come as first support. A break of the 0.69 handle opens up the 0.6885 mark as being the recent lows guarding 0.6675 as the 29th May 2016 on a break of the 0.67 handle.