NZD/USD ends 5-day winning streak, eases to 0.7315

Risk aversion remains the underlying theme in the Asian trades this Friday, with the NZD/USD pair stalled the upside momentum near 0.7340 region.

NZD/USD offered below daily R1 at 0.7356 

Currently, the NZD/USD pair drops -0.20% to test fresh daily lows reached at 0.7314 in the last hour.  The NZD/USD pair brought an end to its five-day winning streak and turned lower from six-week tops as a renewed bout of risk-aversion gripped markets amid ongoing US elections-led jitters, which continue to weigh on investors’ sentiment towards higher-yielding assets.

Moreover, the latest Reuters poll results on the RBNZ cash rate outlook at its policy meeting held next week, also added to the renewed weakness in the Kiwi. While fresh buying interest seen in the US dollar across the board on the back of profit-taking ahead of the NF report, further exerts downward pressure on the spot.

NZD/USD Levels to consider

To the upside, the next resistance is located at 0.7356 (daily R1), above which it could extend gains to 0.7372 (Sept 22 high) and from there to 0.7400 (round figure). To the downside immediate support might be located at 0.7300 (key support) and from there to at 0.7256 (5-DMA), below which 0.7210/05 (100 & 10-DMA) would be tested.