NZD / USD testing support at 0.7150 after rejection from 0.7195

• The kiwi fails at 0.7195 and returns to the support zone at 0.7150.
• The US dollar appreciates further in a risky session.
• NZD / USD Bullish Momentum Loses Force – UOB.

The NZD has given up earlier gains after falling back from 0.7195 on Tuesday, to test support at 0.7150. The pair NZD / USD It has been moving without clear direction in a rocking trading session, ahead of key central bank meetings this week.

The US dollar recovers in a risk appetite session

Kiwifruit has not been able to take advantage of the moderately positive market sentiment. Equity markets posted gains on Tuesday on better-than-expected quarterly earnings reports from UPS and General Electric.

The US Dollar Index cut losses on Tuesday after a soft open, extending Monday’s bounce from 93.45 to session highs at 94.00.

Better-than-expected US new home sales, which rose 14% in September to hit six-month highs with 800,000 units sold, in addition to the unexpected improvement in US consumer confidence and the Solid rise in the Richmond Fed Manufacturing Index could have provided a further boost to the USD during the US trading time.

However, major currencies have remained within previous levels, with investors awaiting key monetary policy decisions by the ECB, BoJ and BoC, to be released later this week, which could set the direction. short-term for currency markets.

NZD / USD bullish momentum loses steam – UOB

UOB’s currency analysis team warns that the NZD is losing traction to the upside: “As highlighted, the bullish momentum is beginning to wane and a breakout of 0.7125 (no change at the ‘strong support’ level) would indicate that the NZD strength that started more than a week ago has run its course. In order to rejuvenate the weakening momentum, the NZD has to move and stay above 0.7180 within these 1 or 2 days, or a breakout of 0.7125 will not it would be surprising. “

Technical levels