NZD/USD clocks fresh 5-week lows near 0.7230

Dhwani Mehta FXStreet

Mixed sentiment on the Asian equities combined with stalled USD selling knocked-off the NZD/USD pair to fresh five-week lows of 0.7224.

NZD/USD back below 5-DMA at 0.7300

The Kiwi slumped nearly 60-pips in the US last session, after the US dollar rallied across the board on the release of better-than expected US retail sales, while further drop in New Zealand’s dairy prices also added to the NZD/USD sell-off.

US: Strong retail sales point to robust start to quarter - ING

Solid US retail sales data lifted Fed’s rate hike expectations in the coming years and brought the monetary policy divergence between the Fed and RBNZ back into play. Meanwhile, the recently released downbeat Chinese economic releases also continue to weigh on the NZD. China is New Zealand’s top trading partner.

China data dump: A big miss on expectations across all indicators

China's CPI m/m rebounds in July, but misses expectations

Next of relevance for the spot remains the US housing data that will be followed by the key FOMC minutes release later on Wednesday.

NZD/USD Levels to consider

NZD/USD failed near 0.7250 (psychological levels), with 0.7200 (Aug 14 low) still guarding 0.7185 (100-DMA) and a break back below 0.7134 (200-DMA) are key near-term downside areas. To the topside, a test of 0.7278 (5-DMA) due on the cards, which could open doors towards 0.7310 (10-DMA).

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.

EUR/USD trims gains, back below 1.1800

EUR/USD now loses some upside momentum, returning to the area below the 1.1800 support as the Greenback manages to regain some composure following the SCOTUS-led pullback earlier in the session.

GBP/USD off highs, recedes to the sub-1.3500 area

Following earlier highs north of 1.3500 the figure, GBP/USD now faces some renewed downside pressure, revisiting the 1.3490 zone as the US Dollar manages to regain some upside impulse in the latter part of the NA session on Friday.

Gold climbs to weekly tops, approaches $5,100/oz

Gold keeps the bid tone well in place at the end of the week, now hitting fresh weekly highs and retargeting the key $5,100 mark per troy ounce. The move higher in the yellow metal comes in response to ongoing geopolitical tensions in the Middle East and modest losses in the US Dollar.