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NZD/USD struggling to extend gains beyond 0.6500

FXStreet (Mumbai) - After soaring to fresh two-month highs in the previous session, the NZD/USD pair continues to remain on the bids in mid-Asia, although retracing a part of yesterday’s heavy gains.

NZD/USD hovering near 0.65 handle

Currently, the NZD/USD pair trades 0.07% higher at 0.6492, moving slightly away from fresh multi-week highs. The Kiwi faced major hurdle just below 100-DMA located at 0.6570 on Monday and continues to recede thereon with the latest deteriorating NZ consumer confidence survey emerging the key catalyst.
The latest NZIER Quarterly Survey of Business Opinion shows business confidence falling to its lowest level since March 2011. The index dropped to -14 against a 5 reading booked previously.

However, the bulls still appear to retain control amid broad based US dollar weakness as markets continue to assess the implications of the recent weak US NFP print (142k vs. 201k expected).

In the day ahead, the pair is likely to get influenced by the US trade balance data while the Fonterra’s prices auction results will also remain in the focus.

NZD/USD Levels to consider

To the upside, the next resistance is located at 0.6570 (100-DMA) levels and above which it could extend gains to 0.6600 levels. To the downside immediate support might be located at 0.6455 (5-DMA) below that 0.6407 (Aug 26 Low).

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