NZD/USD catches fresh bids on RBNZ survey, nears 0.6900

The NZD/USD pair changed course and bounced higher from daily lows reached near 0.6860, after the RBNZ survey showed highest inflation expectations since Q3 2014.

RBNZ Survey: NZ Q2 2-yr inflation expectations at 2.17%

The spot jumped back into the bids and now looks to test 0.69 handle, despite higher US dollar and treasury yields, as the bulls cheer upbeat NZ fundamentals.

Moreover, a pause in the commodities’ sell-off seen a day before, also offered some respite to the resource-linked NZD. However, it remains to be seen if the major can sustain the recovery, as the sentiment turns sour amidst weaker Asian equities and renewed oil-price weakness.

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Markets now eagerly await the US jobs data for next direction on the greenback, as USD short-covering persists after yesterday’s extensive slide.

NZD/USD Levels to consider                                                                              

To the upside, the next resistance is located at 0.6895/0.6900 (5-DMA/ round number), above which it could extend gains to 0.6955 (20-DMA) and from there to 0.6976 (50-DMA). To the downside immediate support might be located at 0.6850 (psychological levels), and from there to 0.6837 (multi-month lows), below 0.6800 (key support) would be tested.