NZD/USD gives away gains and seeks support at 0.6400
- NZD/USD pulls back from 0.6450 area and seeks support at 0.6400.
- The kiwi loses ground with the USD bouncing up following upbeat US data.
- Better than expected Chinese data had buoyed NZD’s demand during Asian and European trading.
The New Zealand dollar has reversed earlier gains on Monday, pulling back from 0.6440 highs to test support area at 0.6400. The kiwi has lost ground after a strong opening, with the US dollar appreciating across the board following better than expected US data.
Kiwi pulls lower as the US dollar rebounds
The NZD/USD has lost traction during the North American trading session with the greenback bouncing up after better than expected US data. Pending home sales have increased 44.3% in May following a 21.8% decline in April, beating expectations of a 19.7% increase. Beyond that, the Dallas Fed Manufacturing Index has improved to a level of -6.1 from 49.2 in the previous month.
Previously, the kiwi had appreciated on the back of the positive surprise of Chinese industrial profits, which showed a 6% increase in May, boosting hopes of a post-pandemic recovery, easing fears of a second coronavirus wave.
NZD/USD Approaching an important support level at 0.6380
From the technical point of view, a break below session lows at 0.6400 would expose 4-week lows at 0.6380 (June 15, 21 lows) before the 200-day SMA, at 0.6315. On the upside, immediate resistance lies at 0.6450 (session highs) and above here, 0.6530 (Jun 23 high) before 0.6585 (June 11 high).
NZD/USD key levels to watch