NZD/USD – 0.73 handle is a tough nut to crack

Despite broad based USD selling on Thursday, NZD/USD failed to hold above 0.73 handle and fell back to 0.7255 levels in the Asian session.

Offered at 0.7311

Spot turned lower from the high of 0.7311 levels. Broad based USD sell-off kept the bid tone around the pair intact throughout the week. Noncommittal Fed minutes and surge in dairy prices at GlobalDairyTrade (GDT) price auction helped the pair as well.

Still, ending the day above 0.73 handle appears to be a tough task. Given the light US economic calendar the spot is at the mercy of overall demand for the US dollars.

NZD/USD Technical Levels

Immediate support is seen at 0.7256 (Aug 2 high), under which the spot could target 0.72 levels. Further losses could run into support at 0.7182 (23.6% of 0.6675-0.7339). On the higher side, violation at 0.7291 (daily high) could yield 0.7325 (July 12 high). A break higher would expose 0.74 handle.