NZD/USD heavy, losing sight of 0.73 handle?
|- DXY rebound knocks-off Kiwi.
- Risk-aversion undermines.
- Awaits US & China data.
Having failed several attempts to regain the 0.73 handle, the NZD/USD pair came under intense selling pressure, mainly driven by the resurgence of the US dollar demand across the board.
NZD/USD finds support near 0.7285
The US dollar staged a solid comeback from more-than three-year lows versus its major rivals, triggering a fresh selling-wave in the NZD/USD pair while persisting risk-off market profile, reflected by negative Asian equities and subdued Treasury yields amid fresh North Korea headlines also add to the weight on the higher-yielding currency NZD.
Moreover, a profit-taking slide from the four-month top also cannot be ruled out, as investors gear up for the Chinese macro releases due tomorrow, with the main focus on the GDP figures. The NZD is used a liquid proxy for bets on China, as China is New Zealand’s top trading partner.
However, the losses may remain capped, in the wake of rising dairy prices and ongoing oil-price rally. Ahead of the China data dump, the pair awaits the US industrial production data and Fed Beige book release for fresh near-term trading opportunities.
NZD/USD Technicals
The pair finds next resistances at 0.7315 (4-month tops), at 0.7350 (psychological levels), 0.7391 (classic R3). Meanwhile, the supports are located at 0.7228 (10-DMA), 0.7200 (zero figure) and 0.7160/52 (200 & 20-DMA).
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.