NZD/USD struggling to take on the recovery above 0.6950
- USD subdued in Asia.
- NZ Fin Min Robertson comments weigh
- Light trading to prevail as US off on Veterans Day
Fresh bids emerged near the confluence zone of 10 and 20-DMA at 0.6916, prompting a recovery in the NZD/USD pair over the last hours, as the bulls now look to regain 0.6950 barrier amid a broadly subdued US dollar.
NZD/USD forms a doji candle on the daily charts
The spot witnessed aggressive selling in early Asia, following the comments from the New Zealand Finance Minister Robertson, who said that the changes to RBNZ mandate could imply looser policy.
However, the Kiwi quickly recovered ground and staged a solid comeback, as focus shifted to the US political drama, with the US tax plan uncertainty keeping the USD recovery capped against its major peers.
Looking ahead, the bulls may struggle to extend the recovery, as the prices have formed a Doji candle on the daily charts, suggesting a lack of clear direction. Hence, the focus remains on the US prelim UoM consumer sentiment data for fresh trading impetus amid holiday-thinned markets.
NZD/USD Levels to consider
The NZD remains supported above 0.6916 (10 & 20-DMA), below which 0.6900 (round number) and 0.6875 (Nov 6 low) are key near-term downside areas. To the topside, a test of 0.6974/80 (previous top) due on the cards, which could open doors towards 0.7000 (natural resistance).