• Stages a solid intraday bounce as investors looked past RBNZ's rate cut hint.
• The positive momentum seemed rather unaffected by a modest USD uptick.
The NZD/USD pair built on its goodish intraday bounce and is currently placed at the top end of its daily trading range, around the 0.6825-30 region.
Despite the fact that RBNZ's Deputy Governor Geoff Bascand hinted to a possible interest rate cut, the pair stalled this week's rejection slide from the 0.6900 handle and managed to find decent support near the very important 200-day SMA.
Growing optimism from the US-China trade talks remained supportive of the prevalent risk-on mood, which turned out to be one of the key factors extending some support to perceived riskier currencies - like the Kiwi and triggered some short-covering trade.
The intraday up-move seemed rather unaffected by a modest US Dollar uptick, though remained capped on the back of a sharp slide in the US Treasury bond yields and firming expectations that the Fed might refrain from raising interest rates further.
It would now be interesting to see if the pair is able to build on the intraday positive momentum or meets with some fresh supply at higher levels amid absent relevant market moving economic releases and ahead of speeches by influential FOMC members.
Technical levels to watch
Immediate resistance is now pegged near the 0.6840-45 region, above which the pair is likely to make a fresh attempt towards conquering the 0.6900 round figure mark. On the flip side, the 0.6800 handle now becomes immediate support to defend, which if broken might drag the pair back towards the 0.6760-55 region (200-DMA).
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