NZD/USD struggles near 1-week lows, below mid-0.6700s
| • The prevalent risk-off mood helps revive greenback’s safe-haven demand.
• Weaker commodities/technical selling further aggravates the selling pressure.
• Traders now eye second-tier US economic data for some short-term impetus.
The NZD/USD pair extended this week's retracement slide from near one-month tops and kept losing ground for the third consecutive session on Thursday.
Having once again failed to sustain/build on its momentum beyond the very important 200-day SMA, the pair witnessed some aggressive long-unwinding pressure and was not being weighed down by a modest US Dollar uptick.
A slight deterioration in risk appetite, as depicted by a weaker tone around equity markets, provided a minor boost to the greenback's relative safe-haven status and was seen driving flows away from perceived riskier currencies - like the Kiwi.
Today's downfall could also be attributed to some follow-through technical selling below the 0.6800 handle, with the prevalent weaker tone around commodity space exerting some additional downward pressure on the commodity-linked currency.
Moving ahead, today's second-tier US economic releases - initial weekly jobless claims and Philly Fed Manufacturing Index, will now be looked upon for some short-term trading impetus later during the North-America session.
Technical levels to watch
Immediate support is pegged near the 0.6720-15 region, below which the pair is likely to break through the 0.6700 handle and retest mid-0.6600s important horizontal support. On the flip side, the 0.6770-75 region, closely followed by the 0.6800 handle now seems to act as immediate strong resistance, which if cleared might lift the pair back towards 0.6845-50 supply zone.
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.