NZD/USD: Bears looking to retake control below 0.6600

  • NZD/USD stays in a choppy range below 0.6580 following its pullback from 0.6601.
  • New Zealand Food Price Index grew past-0.5% to 1.2% in July.
  • Market sentiment struggles to keep the previous day’s upside momentum amid mixed catalysts.
  • Aussie employment data, updates concerning US stimulus, coronavirus and trade wars will be the key.

NZD/USD attacks the lower end of the immediate trading range while trading near 0.6574 during the early Asian session on Thursday. The kiwi pair managed to recover the RBNZ-led losses during late-Wednesday amid risk-on mood. However, the recent challenges to the trading sentiment keep the bears hopeful. In doing so, the pair also ignores upbeat prints of New Zealand’s Food Price Index for July. The price data crossed 0.5% prior with 1.2% MoM.

Dovish RBNZ can’t be ignored…

Upbeat US Consumer Price Index (CPI) data and an absence of major negatives from the Sino-American frontier helped NZD/USD to recovery the RBNZ-led losses the previous day. However, the central bank’s dovish play precedes the latest coronavirus (COVID-19) resurgence and the resulted lockdowns. As a result, the policymakers are likely to turn more pessimistic during their next appearances.

While identifying this, the Australia and New Zealand Banking Group (ANZ)   said, “Now that the RBNZ has adopted a tactical approach to bond purchases and specifically mentioned its desire to actively get the bond curve lower and flatter, we suspect that we will see the pace of bond purchases step up, which will drive long end rates lower, and that will eventually weaken the Kiwi, USD gyrations notwithstanding.”

Talking about the risks, dimming prospects that the US policymakers can overcome stimulus deadlock join the on-going trade wars, not to forget the COVID-19, weigh on the market sentiment. The latest comments from US Trade Representative (USTR) Robert Lighthizer and Treasury Secretary Steve Mnuchin recently stopped the S&P 500 Futures from following its Wall Street benchmark that closed near the all-time high.

Although US President Donald Trump stays ready to cut the payroll taxes, his hard stand against China and Europe will keep the risk-tone sentiment pressured. As a result, the kiwi buyers may witness a sustained weakness in the absence of any major positives. While searching for clues, the pair traders will observe Australia’s July month employment data for fresh impetus. Additionally, the risk factors emanating from the US and virus can keep the markets entertained.

Technical analysis

Unless successfully crossing 21-day EMA near 0.6600, NZD/USD prices become vulnerable to revisit 0.6520 level comprising 50-day EMA that triggered the quote’s post-RBNZ bounce.

Additional important elvels

Today last price 0.6574
Today Daily Change -4 pips
Today Daily Change % -0.06%
Today daily open 0.6578
Daily SMA20 0.6625
Daily SMA50 0.6542
Daily SMA100 0.6297
Daily SMA200 0.6365
Previous Daily High 0.6628
Previous Daily Low 0.6571
Previous Weekly High 0.6691
Previous Weekly Low 0.6575
Previous Monthly High 0.6716
Previous Monthly Low 0.644
Daily Fibonacci 38.2% 0.6593
Daily Fibonacci 61.8% 0.6606
Daily Pivot Point S1 0.6557
Daily Pivot Point S2 0.6535
Daily Pivot Point S3 0.65
Daily Pivot Point R1 0.6614
Daily Pivot Point R2 0.6649
Daily Pivot Point R3 0.6671



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.

Feed news

Latest Forex News

Latest Forex News

Editors’ Picks

EUR/USD consolidating at lows after mixed US data, Powell

EUR/USD trades near a fresh two-month low of 1.1671 after mixed US Markit PMIs, which anyway indicated economic expansion. Fed speakers highlighted the need for more fiscal stimulus.


GBP/USD holds on to daily gains amid Brexit’s optimism

The GBP/USD pair consolidates around 1.2750, underpinned by EU Chief Brexit Negotiator Barnier's optimism on a post-Brexit trade deal. UK Business activity remains in expansion territory according to Markit.


Gold: Elliott Wave downside targets point to the $1767 area

The commodities complex is taking another hit on Wednesday after a tough start to the week. The recent persistent greenback strength has been a thorn in the side of the precious metal since the dollar consolidation began.

Gold News

In search of the Bitcoin anchorage

When the gates of heaven seemed to open, with the moon clearer than ever, selling came back to the crypto board. After the long winter of 2018/2019, hope was already exhausted, and the current setback is finishing with its remains. 

Read more

WTI flirts with the 200-day SMA below $40.00/bbl ahead of EIA

Prices of the WTI are alternating gains with losses below the key $40.00 mark per barrel on Wednesday.

Oil News