NZD/USD bears guard a 61.8% Fibo retracement
|- The market has now digested the Fed and technical could come back into play.
- NZD/USD bears stepped in on a daily basis and will be looking for a downside extension from here.
NZD/USD was ending on Wall Street a touch higher, +0.30%, and had moved up from a low of 0.6995 to score a fresh corrective high of 0.7069.
''Trading ranges remain tight and that strength should not be over-emphasised given the overall underperformance seen over the past month'' analysts at ANZ Bank, however, warned.
Speeches from more Federal Reserve members were the focus in the absence of domestic and in vogue US data, other than US Composite PMI which dropped to 63.9 in June, from 68.7 previously.
For the day ahead, there is still no top-tier data out in New Zealand.
nevertheless, analysts at ANZ Bank argued that NZ’s outperforming economy will deliver more NZD strength on balance.
''However, in the short term, the Wellington COVID scare is a grey cloud, and it seems the question of whether things escalate will come down to old-fashioned luck.''
NZD/USD technical analysis
The bears will be looking for a downside extension while below the April-late June structure between 0.71.21/64 given the recently marked lower daily low and correction that has so far failed at the 61.8% Fibonacci retracement level.
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