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NZD/USD: Rebound stalls just ahead of 0.69 handle

  • Cross-driven moves in play.
  • Lifted by upbeat China services
  • RBNZ Governor Spencer’s comments also support.

The bid tone around the NZD eased a bit towards Asia close, as the bulls take a breather after the vertical rise from 0.6840 levels, with investors now looking forward to the US macro updates for fresh impetus.

NZD/USD eyes a test of 0.6950

The spot rallied more-than 50-pips in the Asian trades this Tuesday, extending its overnight rebound, as the Kiwi got a fresh boost from the comments by the RBNZ Governor Spencer.

RBNZ's Spencer - Time to put more weight on output, employment

Moreover, a corrective slide seen in the US dollar across the board, following yesterday’s sharp rebound backed by the Senate approval of the US tax reform bill, also aided the renewed uptick in the major.

Further, better-than-expected Chinese services PMI data bolstered the rally, with the bulls taking the rates back above the 0.69 handle. However, the Kiwi failed to sustain above the last, as the RBA slightly hawkish monetary policy statement pushed the AUD/NZD cross higher, in turn, kept further upside in the pair capped.

Attention turns towards the US economic releases, including the trade balance and ISM services PMI, due later in the NA session for near-term trading opportunities.

NZD/USD Levels to consider

The spot failed to resist above 0.6900 (round number), below which 0.6866 (5 & 20-DMA) and 0.6828 (classic S2 & Fib S3) are key near-term downside areas. To the topside, a break above 0.6935 (50-DMA) could open doors towards 0.6981 (Nov 9 tops).   

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