NZD/USD bounces-off fresh 2018 lows near 0.6830, NZ GDP still weighs
- A weaker annualized New Zealand’s (NZ) Q1 GDP figures continue to weigh.
- Bears targeting 0.7800 ahead of the US Philly Fed manufacturing index and jobless claims.
The NZD/USD pair remains heavily offered so far this Thursday, having faced fresh selling pressure following the release of NZ Q1 GDP report, which showed a downtick in the annualized figures when compared to the fourth quarter.
The Q1 GDP data casts doubt over the expectations of a rebound in NZ second-quarter growth while also weighing negatively on the Reserve Bank of New Zealand’s (RBNZ) interest rates outlook in the coming months.
Also, a pick-up in the US dollar buying across the board in Asia, as improved risk appetite lifted the demand for Treasury yields across the curve, collaborated to the weakness in the major.
However, over the last minutes, the spot is seen making tepid recovering attempts, tracking the uptick in its OZ neighbor Aussie. But the divergent monetary policy outlooks between the Fed and RBNZ will continue to remain supportive of the greenback, keeping the sentiment undermined around the Kiwi.
Data-wise, markets await the US Philly Fed manufacturing index and jobless claims for near-term trading opportunities.
NZD/USD Technical Levels
Resistance 1: 0.6900-0.6923 area figure and supply/demand level, Resistance 2: 0.6960, June 1 low, Resistance 3 0.7000 (round number).
Support1: 0.6833, current 2018 low, Support2: 0.6816 December 1, 2017 low, Support 3: 0.6780, 2017 low.
Author
Dhwani Mehta
FXStreet
Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.
