NZD/USD unable to find flight in risk-off sentiment, but supported 0.7280
|Currently, NZD/USD is trading at 0.7284, up 0.08% on the day, having posted a daily high at 0.7289 and low at 0.7281.
NZD/USD has found support around the 0.7280 mark after a decline from 0.7334 in Asia yesterday with a broad-based resurgence in the US dollar. However, the gains in the dollar made were short lived and partially paired off on the back of the political tensions in the Whitehouse and terror in Barcelona. The bird, however, was unable to take advantage and remained under water by -0.36%.
The US session's headlines and market wrap:
- Forex today: risk sentiment affected by Barcelona 'Terror Attack'
- Van has crashed into ‘dozens of people’ in Barcelona’s City Centre - La Vanguardia
- US industrial production shows slight downside miss - ING
- Philly Fed: Manufacturing conditions in the region continued to advance in August
- US: Weekly initial claims was 232,000, a decrease of 12,000 from previous week
- Cohn intends to remain in his position as NEC director - WH official - Reuters
For the day ahead, analysts at Westpac suggest that the bird can go lower to test 0.7280 if global sentiment remains risk averse.
NZD/USD 1-3 month:
Further out, the analysts repeat that if the RBNZ remains firmly on hold, as we expect, and the US dollar rises on tighter Fed policy, then NZD/USD could fall as far as 0.69 by year end.
NZD/USD levels
To the upside, 0.73 the figure is a congestion area ahead of 0.7333 highs and 0.7370 (9th Aug high) as being the first resistance areas. To the downside, 0.7280, 0.7205, the 06 June 22/21 lows and 0.7186 June 15 low along with the 50% of the move up from the 2017 low (May low) at 0.7187 are key areas of support ahead of 0.7150 June 5 high; 0.7127 June 6 low and 0.7100.
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