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NZD/USD sits at fresh 6-week highs above 0.6600

FXStreet (Mumbai) - The NZD/USD pair extends its vertical rise into a seventh day on Wednesday and jumps above 0.66 handle, the highest level since Aug 24, as the bullish momentum in the commodity space, especially oil, bolsters the resource-linked Kiwi.

NZD/USD supported at hourly 50-SMA

Currently, the NZD/USD pair trades 1.21% higher at 0.6622, retesting multi-week highs recorded at 0.6631. The New Zealand dollar continues to appreciate sharply versus its American rival heading into the US opening bells on increased demand for higher yielding assets amid rallying oil prices, which continue to boost the risk-on trades.

The bird received renewed strength from Tuesday’s Fonterra’s auction results, which showed that the dairy prices soared in the fortnight ended Oct 6. The GDT prices index posted a 9.9% gain versus a 16.5% spike seen in Sept.

Looking ahead, the pair is expected to remain underpinned with further upmoves in-store ahead of the much-awaited FOMC minutes.

NZD/USD Levels to consider

To the upside, the next resistance is located at 0.6691 (Aug 24 High) levels and above which it could extend gains to 0.6742 (July 29 High) levels. To the downside immediate support might be located at 0.6573 (hourly 20-SMA) below that 0.6536-28 (Today’s Low & hourly 50-SMA).

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