NZD/USD: Bulls testing hourly 20-SMA resistance

The NZD/USD pair stalls the Asian recovery as we head into early Europe, as the bulls await the European open for next push higher.

NZD/USD awaits NZ GDP

Currently, the NZD/USD pair trades +0.18% higher at 0.7266, testing session highs posted previously 0.7268. The Kiwi struggles to take-out the hourly 20-SMA upside barrier placed near 0.7270, and now consolidates the recent gains amid mixed sentiment persisting across the fx board.

The renewed strength behind the oil prices coupled with a muted US dollar against its major rivals, keeps the sentiment around the NZD/USD pair buoyed.

Calendar-wise, the bulls appear to have ignored poor NZ current account report, which showed that the BoP Current account deficit for Q2 came in at 945mln versus a deficit of -295mln expected and against a surplus of 1306mln seen previously.

Focus remains on the EIA crude stockpiles report due later in the NA session as also on the NZ GDP release due on the cards in the early Asian morning tomorrow.

NZD/USD Levels to consider

To the upside, the next resistance is located at 0.7303/06 (20 & 5-DMA), above which it could extend gains to at 0.7339/50 (10-DMA/ psychological levels). To the downside immediate support might be located at 0.7214 (50-DMA) and from there to at 0.7149 (daily S2).