NZD/USD: Mildly bid around 0.6750 as commodity bulls maintain the hold, USD weakness persists
- Kiwi buyers remain present amid thin data as greenback weakness joins sustained strength in commodity prices.
- Prices regained their stand above 200-day SMA, indicating 0.6760 and 0.6800 to come back on the chart.
NZD/USD trades little positive near 0.6740 at the start of Tuesday’s Asian session. The Kiwi pair rose on Monday expectedly due to an increase in commodity prices led by oil and the US Dollar (USD) weakness. With less data points up for release during the day, investors may keep observing qualitative catalysts from the US, Iran, Libya and China in order for fresh impulse.
Soft US details and an extended rally to fresh five-month high by crude oil boosted commodity-linked currencies like the New Zealand Dollar (NZD) on Monday.
The escalation in hostilities in Libya, coupled with the US terming Iran's Revolutionary Guard as a terrorist organization, played their part in helping the Crude oil prices that were earlier enjoying news reports favoring a trade deal between the US and China.
Adding to the sentiment was -0.5% contraction of the US factory orders for February month versus +0.1% earlier growth.
The economic calendar is likely to remain silent for the second consecutive day with no major data from either the US or New Zealand. As a result, the US JOLTS job openings may gain increased market attention than the otherwise case. The labor market indicator may register 7.550 million increase against 7.581 million prior.
Developments surrounding the energy market could also maintain their dominance whereas fresh news reports from the US-China trade front might as well be observed closely.
NZD/USD Technical Analysis
Having regained its stand above 200-day simple moving average (SMA), the NZD/USD pair is likely heading towards 0.6760 and 100-day SMA level of 0.6810.
Should prices again slip under 0.6735, comprising 200-day SMA, 0.6700, 0.6690 and 0.6650 are consecutive important numbers for the sellers to watch.