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    NZD/USD trims RBNZ led gains, now back sub-0.7100 level Haresh Menghani

    Extending its reversal from yearly high level of 0.7150 led by RBNZ's status-quo monetary policy, the NZD/USD pair has now dropped back below 0.7100 handle.Currently trading at 0.7085, the pair is testing fresh session low and is inching closer to Thursday's low 0.7072. On Thursday, the pair jumped to 0.7150 after RBNZ surprised markets by leaving its benchmark interest rate unchanged at 2.25% against an expected 25bps rate-cut. The pair, however, lost momentum at higher level to reverse sharply as global risk-off sentiment boosted demand for the greenback.On Friday, the pair initially spike to 0.7122, the pair extended its corrective move as retracement in crude oil prices dented demand for commodity-linked currencies, like the kiwi. Moreover, jittery global equity markets continued to boost appetite for the US Dollar.Lack of follow-through buying interest and a subsequent break below Thursday's low level support near 0.7070 level now seems to accelerate the fall.Technical levels to watchFrom current levels, weakness below Thursday's low support near 0.7070 is likely to find immediate support near a previous strong resistance, now turned immediate strong support, near 0.7060-50 region, below which the pair drop back to test 0.7000 psychological mark support.On the upside, 0.7150-70 area remains immediate resistance to clear, which if conquered has the potential to continue boosting the pair further towards June 2015 highs resistance near 0.7230-35 area before the pair aims towards reclaiming 0.7300 handle.


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