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NZD/USD flattish below 0.7400

FXStreet (Mumbai) - http://www.fxstreet.com/technical-studies/currencies/nzdusd/ trades around a flatline below 0.74 barrier in the Asian and is headed for a solid weekly gain after the Reserve Bank of New Zealand (RBNZ) refrained from a rate cut yesterday, dampening hopes for a rate cut this year.

NZD/USD capped by stronger USD

Currently, the NZD/USD pair trades flat at 0.7393, having posted session highs at 0.7406 levels at Tokyo open. NZD/USD is seen consolidating gains from the previous session after rallying above 0.74 handle on RBNZ’s unchanged rate-decision.

The New Zealand dollar also remains supported against the US counterpart after NZ factory sector expanded at a better pace last month than in January, adding to recent evidence that the economy remains in a steady growth phase. The Business New Zealand Manufacturing index jumped to 55.9 in February from a revised 50.7 in January.

However, a rebound in the US dollar across the board kept a lid on the upside in NZD/USD. Meanwhile, traders now shift their attention towards a deluge of US economic releases later in the day for further momentum on the pair.

NZD/USD Levels to consider

To the upside, the next resistance is located at 0.7406 (Today’s High) levels and above which it could extend gains to 0.7450 (March 12 High) levels. To the downside immediate support might be located at 0.7350 levels below that at 0.7300 levels

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