NZD/USD attempts a rebound above 0.6150, risk-off impulse is still active


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  • NZD/USD has witnessed an attempt at recovery after dropping to near 0.6160.
  • More downside in the kiwi asset is still favored as the risk-off impulse is still solid.
  • This week, Fed Powell’s speech and US ADP Employment data will be of utmost importance.

The NZD/USD pair has sensed some bids after a vertical drop to near 0.6160 in the late New York session. The kiwi asset witnessed intense selling pressure on Monday after surrendering the round-level support of 0.6200. An attempt at a recovery near 0.6160 should not be considered a reversal, as the market mood is still cautious, and a cushion is yet to be finalized.

The US Dollar Index (DXY) has extended its gains to near 106.67 after a V-shape recovery from a low of 105.40. Rising protests against the Covid-19 lockdown in China have significantly impacted commodity-linked currencies, being their major trading partners. Therefore, the decline in antipodeans is higher than the gains recorded in the USD Index.

S&P500 has experienced significant losses, portraying a sour market mood. Meanwhile, the returns on US Treasury bonds are still subdued ahead of a speech from Federal Reserve (Fed) chair Jerome Powell. After a mild recovery, the 10-year US Treasury yields are still below 3.70%. It seems that anxiety ahead of Fed Powell’s speech has sidelined them.

Apart from Fed Powell’s speech, investors keep an eye on the United States Automatic Data Processing (ADP) Employment data. As per the estimates, the US economy has created additional 200k jobs in November vs. the prior release of 239k. The job creation numbers have been declining in the past few months as higher interest rates and weaker economic projections have forced firms to use their current manpower in the best manner and postpone the recruitment process.

NZD/USD

Overview
Today last price 0.6165
Today Daily Change -0.0087
Today Daily Change % -1.39
Today daily open 0.6252
 
Trends
Daily SMA20 0.6041
Daily SMA50 0.5843
Daily SMA100 0.6019
Daily SMA200 0.6301
 
Levels
Previous Daily High 0.6278
Previous Daily Low 0.6219
Previous Weekly High 0.629
Previous Weekly Low 0.6087
Previous Monthly High 0.5874
Previous Monthly Low 0.5512
Daily Fibonacci 38.2% 0.6241
Daily Fibonacci 61.8% 0.6255
Daily Pivot Point S1 0.6222
Daily Pivot Point S2 0.6191
Daily Pivot Point S3 0.6162
Daily Pivot Point R1 0.6281
Daily Pivot Point R2 0.6309
Daily Pivot Point R3 0.634

 

 

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