• Bulls show resilience below the 0.70 mark despite a modest USD uptick.
• Pickup in the US bond yields/weaker commodities did little to exert pressure.
The NZD/USD pair built on its modest rebound from over one-week lows and is currently placed at fresh session tops, around the 0.7015-20 region.
The US Dollar stood tall against its major counterpart in anticipation of some hawkish policy outlook from the Federal Reserve, evident from the prevalent positive tone surrounding the US Treasury bond yields.
The pair, however, defied a modest USD uptick and continues finding decent buying interest at lower levels, showing resilience below the key 0.70 psychological mark.
Even weaker commodity prices, which tend to undermine demand for commodity-linked currencies, also did little to prompt any selling, with a bout of short-covering helping the pair to recover a major part of overnight weakness.
Today’s key focus will remain on the outcome of a two-day FOMC meeting, where fresh signals over the central bank’s monetary policy outlook for 2018 should help determine the pair’s next leg of directional move.
Technical levels to watch
Any subsequent up-move is likely to confront immediate resistance near the 0.7035-40 region and is closely followed by 0.7060 barrier, over one-month tops set on June 6th.
On the flip side, the 0.70 region might continue to protect the immediate downside, which if broken would mark a fresh bearish breakdown and accelerate the downfall towards 0.6965-60 support area.