NZD/USD drops sharply to test 0.7150

The buying interest behind the US dollar picked-up pace since the late-Asian trades, knocking-off the NZD/USD pair to the mid-point of 0.71 handle.

NZD/USD eyes 10-DMA at 0.7133

Currently, the NZD/USD pair trades modestly flat at 0.7157, flirting with fresh session lows posted at 0.7152 last minutes. The NZD/USD pair faced rejection at 5-DMA in early Asia and subsequently drifted lower, now running through fresh offers as the US dollar resumes upward rally versus its six major competitors.

Moreover, stalled rebound in the oil prices and increased cautiousness ahead of the BOE policy decision also dented the demand for higher-yielding currencies such as the NZD.

Next of relevance for the major remains the weekly jobless claims and factory orders data from the US docket, lined up for release later in the NA session.

NZD/USD Levels to consider

To the upside, the next resistance is located at 0.7200 (round number), above which it could extend gains to 0.7250/61 (psychological levels/ multi-week highs). To the downside immediate support might be located at 0.7133/21 (10 & 50-DMA) and from there to at 0.7109 (20-DMA).