NZD/USD extends the rebound to test 0.7200, awaits US data

The NZD/USD pair caught a sudden bid-wave in Asia and thereafter staged a solid comeback, as the bulls look to regain 0.72 handle amid broad based US dollar weakness.

NZD/USD: US jobs data in focus

The Kiwi broke its overnight bearish consolidative mode to the upside, as the recent selling interest seen in the US dollar across its main peers came to the rescue of the NZD bulls, which helped to lift the rate from four-week lows of 0.7147.

The greenback came under renewed selling pressure after its ran into resistances below 94 handle versus its major rivals, in response to looming uncertainty over who will be the next Fed Chairperson. Trump Aides: Yellen under consideration, but not recommended by many aides

In the US last session, the spot faced aggressive selling and slumped to the lowest levels since early September, after the NZ GDT price data showed a steep drop in the dairy prices. The data showed the worst results in months.

Looking ahead, it remains to be seen if the major manages to sustain the recovery mode amid weaker oil prices and downbeat NZ job ads data published by ANZ for the month of Sept.

The main risk event for NZD/USD today remains the US ADP jobs report and ISM services PMI data. Also, in focus will remain the Fedspeaks for fresh insights on the US interest rates outlook.

NZD/USD Levels to consider                                                                              

NZD/USD tested 5-DMA at 0.7196, with 0.7168/67 (Sept 28 & 26 low) still guarding 0.7157 (200-DMA) and a break back below 0.7100 (round number) are key near-term downside areas. To the topside, a test of 0.7218 (10-DMA) due on the cards, which could open doors towards 0.7255 (20-DMA).