NZD/USD hovers near lows circa 0.7660

FXStreet (Mumbai) - NZD/USD erased gains and fell back in red in the mid-Asian session, reversing a brief spike tracking its OZ neighbour following better than expected Australia’s inflation figures.

NZD/USD drops from 0.7670

Currently, the NZD/USD pair trades lower by -0.18% at 0.7660, testing session lows at at 0.7659. NZD/USD continues to oscillate in the 30-pips range after a highly volatile session yesterday mainly driven by US dollar moves amid lack of significant fundamentals.

The NZD/USD pair fell in to red as the US dollar resumed its upside momentum and turned positive with the DXY modestly higher to the tune of 0.07% at 98.27.

Earlier this session, the Kiwi spiked to fresh highs correlating its Australian counterpart after a slightly stronger than expected inflation data saw traders reduce their rate-cut bets, boosting the Aussie.

Meanwhile, traders now focus on US existing home sales data due later in the day for fresh direction on the pair.

NZD/USD Levels to consider

To the upside, the next resistance is located at 0.7688 (Today’s High) levels and above which it could extend gains to 0.7700 levels. To the downside immediate support might be located at 0.7632 (April 21 Low) levels below that at 0.7600 levels.