Offers at the 0.7000 figure level is still capping the pair
The kiwi was the best performing major currency in yesterday's trading, with NZD/USD rising by more than 1.2%.
The pair tested the 21 May low yesterday but support there and the turnaround in sentiment in the European trading as a result of Italy saw the pair climb higher to test near the 0.7000 handle.
Offers at the figure level saw buyers rejected from a bid to break higher, and the downside move today following poor data saw the pair test the 23.6 retracement level @ 0.6971 from yesterday's upswing. As a result, buyers held firm at the support level there and the pair is now tracking higher in a bid to retest the 0.7000 level again.
Beyond the 0.7000 level, the next key level to watch out for is 0.7032 (61.8 retracement on the daily chart) followed by 0.7074 (3 January low). As for downside levels, the key is to watch out for any test of the 100 or 200-hour moving averages in an event where risk sentiment turns sour again. Do take note that there is also a large expiry (NZD 2.1bn) @ 0.6900.
