NZD/USD firmer, holds above 0.7200

A sharp rebound in the oil prices lifted the sentiment around the NZD, now pushing NZD/USD further beyond 0.72 handle

NZD/USD tracks oil, AUD higher

Currently, the NZD/USD pair trades +0.63% higher at 0.7217, retreating slightly from fresh session highs reached at 0.7227 in the last hour. The Kiwi resumed its last week winning streak, reversing a temporary reversal seen yesterday, as the bulls found fresh impetus from solid recovery staged by the oil prices.

Moreover, a broadly weaker US dollar amid heavy selling in USD/JPY also collaborated to a fresh rally in the NZD/USD pair. Meanwhile, the USD index drops -0.41% to fresh four-week lows of 95.33 levels.

Furthermore, The Kiwi also benefited from solid gains witnessed in AUD/USD, despite RBA’s rate cut decision today. The Australian central bank slashed rates to a new record low of 1.50%, however, the RBA failed to provide clearer hint on further easing, which triggered fresh rally in the Antipodean.

Looking ahead, markets now await the US economic releases for fresh momentum on the major.

NZD/USD Levels to consider

To the upside, the next resistance is located at 0.7250/58 (psychological levels/ daily R2), above which it could extend gains to 0.7300 (round number). To the downside immediate support might be located at 0.7170 (5-DMA) and from there to at 0.7118/13 (20 & 50-DMA).