NZD/USD trims losses and rises back above 0.7200 on Yellen

The NZD/USD pair trimmed losses during the last hours, rising 50 pips from the lows. It bottomed earlier at 0.7166, the lowest since September 4 and, at the moment, it trades at 0.7215. 

The recovery took place amid a decline of the greenback in the market following remarks from Janet Yellen. She mentioned that uncertainties strengthen the path of gradual rate hikes while regarding inflation, she mentioned that there are considerable odds that won't stabilize at 2% over next few years.

Fed's Yellen: Currently not considering changing inflation target

Yellen crossing the wires (dollar strength) "Uncertainties strengthen case for gradual rate hikes" - RTRS

The pair moved off lows but is still down more than 50 pips for the day, headed toward the third decline out of the last four days ahead of Thursday’s RBNZ decision. 

NZD/USD Levels to watch 

A daily close below 0.7200 would reinforce the short-term bearish bias. Immediate support is seen around daily lows at 0.7165 followed by 0.7140 (Sep low). On the upside, if the kiwi manages to remain above 0.7200, it could gain strength for a more significant rebound. Resistance levels might lie at 0.7245 (Sep 19 low) and 0.7275 (Sep 26 high).