NZD/USD: Bears brace for mid-0.6900s as market mood sours


  • NZD/USD seesaws inside a small trading range following the U-turn from three-week top.
  • Covid woes challenge economic recovery hopes but RBNZ hawks stay firm.
  • FOMC Meeting Minutes, virus updates will direct short-term moves.

NZD/USD consolidates the previous day’s losses above 0.7000, up 0.08% around 0.7020, amid Wednesday’s Asian session. In doing so, the quote struggles between hawkish bets for the Reserve Bank of New Zealand’s (RBNZ) next move and the coronavirus (COVID-19). However, the bears are hopeful as technical details join market fears.

Be it Bank of New Zealand or the Australia and New Zealand Banking Group (ANZ), not to forget Westpac, all seem to be on the same page while expecting a rate hike from the RBNZ during late 2021. These banks portray the Pacific nation’s ability to tame covid spread at home and upbeat fundamentals to back their bullish view.

Even so, virus resurgence at the largest customer Australia and fears of the covid strain, which mostly signal resistance to the vaccines, keep weighing on the sentiment and Antipodeans. Furthermore, recently weak US data, ISM Services PMI was the latest, probe economic recovery hopes and adds to the risk-off mood.

That said, S&P 500 Futures drop 0.10% while the US 10-year Treasury yields remain pressured around the lowest since late February by the press time.

Considering the lack of data/events and the covid woes’ dominance, not to forget the cautious sentiment ahead of the FOMC minutes, NZD/USD prices may remain pressured.

Technical analysis

NZD/USD remains below the key horizontal hurdle from mid-June, not to forget 100 and 200-SMAs, by the press time. The bears can also observe, as well as cheer, the MACD conditions that recently flashed a sell signal and the Momentum line having a notable room to the south.

That said, the kiwi pair is on the way to test an ascending support line from June 18, around 0.6955. However, the 0.7000 threshold tests intraday sellers.

Meanwhile, 100-SMA guards the quote’s corrective pullback near 0.7030, a break of which could recall NZD/USD buyers aiming for the stated horizontal hurdle surrounding 0.7095–0.7105.

It should be noted that the 200-SMA level of 0.7125 can offer an extra check for the NZD/USD bulls beyond the key horizontal area.

NZD/USD: Four-hour chart

Trend: Bearish

Additional important levels

Overview
Today last price 0.7017
Today Daily Change 0.0006
Today Daily Change % 0.09%
Today daily open 0.7011
 
Trends
Daily SMA20 0.705
Daily SMA50 0.7154
Daily SMA100 0.7154
Daily SMA200 0.7062
 
Levels
Previous Daily High 0.7106
Previous Daily Low 0.6988
Previous Weekly High 0.7087
Previous Weekly Low 0.6947
Previous Monthly High 0.7289
Previous Monthly Low 0.6923
Daily Fibonacci 38.2% 0.7033
Daily Fibonacci 61.8% 0.7061
Daily Pivot Point S1 0.6964
Daily Pivot Point S2 0.6917
Daily Pivot Point S3 0.6846
Daily Pivot Point R1 0.7082
Daily Pivot Point R2 0.7153
Daily Pivot Point R3 0.72

 

 

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. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Feed news

How do emotions affect trade?
Follow up our daily analysts guidance

Subscribe Today!    

Latest Forex News


Latest Forex News

Editors’ Picks

EUR/USD: Focus on two-month-old support near 1.1750

EUR/USD remains pressured around three-week lows, consolidate the biggest daily fall in a month. Firmer Momentum back-up to the south-run, 50-DMA break favor sellers.

EUR/USD News

GBP/USD: Bulls and bears will battle this out near the 61.8% golden ratio

The GBP/USD price has corrected 50% of the hourly bearish impulse. The bulls have been chipping away as profits are taken with bears moving aside one by one. This has resulted in a slow decelerating correction from which could attract sellers again. 

GBP/USD News

EUR/USD: Focus on two-month-old support near 1.1750

EUR/USD remains pressured around three-week lows, consolidate the biggest daily fall in a month. Firmer Momentum back-up to the south-run, 50-DMA break favor sellers.

EUR/USD News

Ethereum Classic Price Prediction: ETC coils up for 40% upswing

Ethereum Classic price shows choppy action as it approaches the lower trendline of an ascending parallel channel. The $52.92 support floor is likely to be tagged before a 40% upswing originates.

Read more

US Michigan Consumer Sentiment Preview: Markets will have to look hard for positive signs

Consumer outlook expected to rebound to 72.2 in September. August’s 70.2 was the lowest since December 2011. Inflation and Delta variant wearing on US optimism. Markets face negative dollar risk from fading consumer optimism.

Read more

Forex MAJORS

Cryptocurrencies

Signatures