FxWirePro: NZD/USD extends gains above 0.70 handle, kiwi strengthens ahead of Q2 employment data

NZD/USD chart - Trading View 

NZD/USD was trading 0.65% higher on the day at 0.7011 at around 11:00 GMT, breaks above 21-EMA.

The New Zealand dollar remains bid ahead of Q2 employment data, the pair is poised to challenge 55-EMA resistance at 0.7041.

Analysts expect to see strong labour market data on Wednesday that could pressure the Reserve Bank of New Zealand to raise rates this month.

Meanwhile, there were no fresh cases recorded in the community as per the Ministry of Health. Risk-on seems to benefit the antipodean. 

Earlier on Tuesday, Reserve Bank of New Zealand (RBNZ) Governor Adrian Orr proposed tighter lending standards to control the house prices, but NZD largely ignores RBNZ-led housing loan moves.

Major Support and Resistance Levels:

Support - 0.6988 (21-EMA), Resistance - 0.7041 (55-EMA)

Summary: NZD/USD break above 21-EMA has raised scope for further upside. Bullish RSI divergence adds to the upside bias. That said, 'Death Cross' (bearish 50-DMA crossover on 200-DMA) could cap upside in the pair.