NZD/USD drops to daily lows near 0.7260 despite upbeat GDT outcome
|- GDT Price Index rises 4.9% in the last auction.
- DXY extends recovery in the early NA session.
The NZD/USD pair pushed lower in the early NA session and refreshed its daily low at 0.7261. As of writing, the pair was trading at 0.7265, losing 0.28% on the day.
The pair's price action on Tuesday continues to be dominated by the positive mood surrounding the greenback. After closing four straight days sharply lower, the US Dollar Index finally took a breather on Tuesday. The DXY, which plummeted to a three-year low near the 90 mark on Monday, is now at 90.55, up 0.45% on the day. In the meantime, although the headline general business conditions index of the Empire State Manufacturing Survey eased to 17.7, the fact that labor market conditions, new orders and selling prices sub-indexes didn't allow the report to have a negative impact on the USD.
On the other hand, following the previous 4.2% increase, the GDT Price Index rose by 4.9% at the end of today's auction but failed to help the kiwi retraces its losses against the buck.
Technical outlook
The pair could encounter the first technical support at 0.7225 (Jan. 12 low) ahead of 0.7150 (200-DMA) and 0.7075 (Jan. 4 low). On the upside, resistances align at 0.7315 (Jan. 15 high), 0.7415 (Sep. 20 high) and 0.7500 (psychological level).
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.