NZD/USD defends 0.67 handle as Wheeler damps big rate cuts

FXStreet (Mumbai) - The New Zealand dollar stalled its upsurge and eased-off highs versus the American dollar in early Asian morning, keeping NZD/USD near two-week highs above 0.67 handle, as the Kiwi remains underpinned by RBNZ Governor Wheeler’s latest speech on early Wednesday while a retreating US dollar across the board also supported the upmoves.

NZD/USD retraces from 2-week highs at 0.6721

Currently, the NZD/USD pair trades higher by 0.39% at 0.6706, easing-off fresh two-week highs reached at 0.6721 shortly after Wheeler’s comments. The bird remains well bid as markets continue to digest the latest remarks from the central bank chief, viewing it positive for the domestic currency.

Speaking to an ExportNZ/Tauranga Chamber of Commerce audience, RBNZ Governor Wheeler believed that further NZD depreciation was necessary for overall economic growth, although added that the economy currently isn’t weak enough that it requires more exuberant OCR cut expectations.

Looking ahead, markets await fresh developments from China amid a data-empty Asian calendar for the pair. While the Federal Reserve will publish its much awaited interest rate decision tomorrow afternoon - unlikely to be unchanged. However, investors will closely await any clues which might shed more light into the timing of intensely discussed monetary tightening.

NZD/USD Levels to consider

To the upside, the next resistance is located at 0.6746 (July 14 High) levels and above which it could extend gains 0.6775 (July 10 High). To the downside immediate support might be located at 0.6680 (July 10 Low) below that at 0.6621 (July 8 Low) levels.