NZD/USD bears take back control on banking sector concerns


  • NZD/USD drops back towards Monday´s open as risk-off sentiment weighs. 
  • Banking sector worries have sunk equities and high beta currencies. 

NZD/USD is down some 0.45% into the closing of the US session and Tuesday´s trade after suffering a risk-off blow with the US Dollar tearing higher since the early Europen session. NZD/USD fell to a low of 0.6133 and from a high of 0.6187 on the day.

´´The reversal has come amid a slide in regional bank stocks, which has, in turn, led markets to question how locked in a May Fed hike actually is, and driven safe-haven buying of USDs,´´ analysts at ANZ Bank explained.

Consequently, high beta currencies, such as NZD have fallen as equities drop. The US Dollar index, DXY, benefitted from the risk-off flows and was last up 0.51% at 101.84, a touch off the highs at 101.949. Plunging deposits at First Republic Bank have reignited worries over the health of the banking sector. Additionally, UBS reported a 52% slide in quarterly income as it prepared to swallow fallen rival Credit Suisse.

´´Volatility thus remains elevated, and we may get even more locally today with the release of March trade data, which will only serve as a reminder to markets of NZ’s yawning current account gap – something that we see as a downside risk to our expectation of a mild NZD appreciation in 2023,´´ the analysts at ANZ Bank explained, adding, ´´we also get AU Consumer Price Index data today, which is key given the NZD’s correlation to the AUD.´´

NZD/USD

Overview
Today last price 0.614
Today Daily Change -0.0027
Today Daily Change % -0.44
Today daily open 0.6167
 
Trends
Daily SMA20 0.6232
Daily SMA50 0.622
Daily SMA100 0.6296
Daily SMA200 0.6163
 
Levels
Previous Daily High 0.617
Previous Daily Low 0.6125
Previous Weekly High 0.6227
Previous Weekly Low 0.6126
Previous Monthly High 0.6298
Previous Monthly Low 0.6084
Daily Fibonacci 38.2% 0.6153
Daily Fibonacci 61.8% 0.6142
Daily Pivot Point S1 0.6138
Daily Pivot Point S2 0.6109
Daily Pivot Point S3 0.6093
Daily Pivot Point R1 0.6183
Daily Pivot Point R2 0.6199
Daily Pivot Point R3 0.6228

 

 

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