NZD/USD flirts with highs near 0.7075, ignores weaker Oil

After having staged a minor-bounce in Asia, the NZD/USD pair entered a phase of consolidation within 0.7065-75 band, as the bulls await fresh impetus from the US jobs numbers for the next push higher.

NZD/USD hovers around 5-DMA at 0.7073

The major regains lost ground somewhat on Friday, following a two-day retreat in the wake of renewed USD strength and poor China’s manufacturing PMI report. Risk-on moods prevalent in the market also helps keep the upside bias intact in the Kiwi.

The overall market sentiment remains lifted as we head towards the European opening bells, as investors cheer recent series of upbeat US fundamentals, which suggest a Fed rate hike this month remains imminent.

However, further upside could lack follow-through as weaker oil prices continue to weigh on the resource-linked NZD. Next of relevance for the spot remains the US labour market report, which will be reported at 1230GMT later today.

NZD/USD Levels to consider                                                                              

To the upside, the next resistance is located at 0.7122 (multi-week high), above which it could extend gains to 0.7150/52 (psychological levels/ Mar 2 high) and from there to 0.7200 (round number). To the downside immediate support might be located at 0.7050/56 (psychological levels/ 10-DMA), and from there to 0.7021 (100-DMA), below 0.7000 (key support) would be tested.