NZD/USD supported at 0.7300 amid search for higher yields

NZD/USD resumes its bullish momentum this Friday, after having witnessed a temporary reversal a day before, as markets now look forward to the Fed Yellen’s remarks for next direction in the major.

NZD/USD keeps the red as Oil slips

Currently, the NZD/USD pair drops -0.14% to 0.7280, having failed several attempts to retest 0.73 barrier. Amid a lack of fundamental drivers and lack lustre trading seen across the forex board, the NZD/USD pair remains well bid and manages to hold above 0.73 barrier as yield-starved investors have turned to those currencies for potentially greater returns ahead of the much-awaited Jackson Hole Symposium.

Meanwhile, a fresh bout of profit-taking in the US dollar across the board, alongside recovery in the commodities’ prices also underpins the sentiment around the Kiwi.

Looking ahead, focus remains on the US GDP Data and Fed Yellen’s speech due later on the day. Yellen is expected to shed light on whether an interest-rate hike is likely in 2016, which is expected to trigger massive volatility across the financial markets.

NZD/USD Levels to consider

To the upside, the next resistance is located at 0.7337/39 (Aug 25 & 24 high), above which it could extend gains to at 0.7339/46 (daily R1/ 3-week tops). To the downside immediate support might be located at 0.7298/85 (5 & 10-DMA) and from there to at 0.7230 (20-DMA).