NZD/USD erases early gains, mildly negative at 0.7040

The NZD/USD pair reversed all of Asian trading session gains to 0.7070 level and has now turned negative to currently trade below 0.7050.

Earlier today, the pair extended Thursday’s late up-swing from sub-0.700 psychological mark and jumped higher before attracting fresh offers around 0.7070 level. The pair, however, held its neck above 5-day SMA as the pair continues finding support from a broad based weak sentiment surrounding the greenback.

Also on Thursday, the pair fizzled an early Asian session bullish spike to 0.7100 neighborhood led by Fed inaction on Wednesday and Thursday’s release of better-than-expected NZ Q1-2016 GDP.

On Friday, nothing of much important is slated for release during the European trading session ahead of housing data from the US, later during NA session. In the meantime, the pair might continue to be driven by the global risk sentiment driving other major currencies.

Technical levels to watch

Resumption of weakening trend and a decisive break back below 0.7000 psychological mark support is likely to drag the pair back towards 0.6970-65 horizontal support, below which the pair seems all set to drift towards its next major support around 0.6900 round figure mark.

On the flip side, 0.7045-50 remains immediate hurdle to clear, above which the pair seems to make a fresh attempt to move back above 0.7100 handle before rising further towards RBNZ swing highs resistance near 0.7145-50 zone.