- NZD/USD stages a correction after posting strong gains last week.
- US Dollar Index stays in the positive territory above 92.20.
- Trading action is likely to remain subdued due to Labor Day holiday in US.
The NZD/USD pair gained more than 150 pips last week but struggled to preserve its bullish momentum on Monday. As of writing, the pair was down 0.25% on the day at 0.7142.
DXY rebounds in quiet day
On Friday, the disappointing jobs report from the US, which showed that Nonfarm Payrolls rose by only 235K in August, triggered a USD selloff and allowed NZD/USD to climb to its strongest level since early June at 0.7171. However, the US Dollar Index (DXY) is staging a rebound at the start of the week, forcing NZD/USD to retrace its rally. Currently, the DXY is up 0.17% on the day at 92.27.
Nevertheless, the lack of high-tier macroeconomic data releases and fundamental developments suggests that the DXY's rebound is a technical correction. Furthermore, the trading action is expected to remain subdued in the remainder of the day with the US markets being closed due to the Labor Day holiday.
NZD/USD: Waning Delta cases and higher yields to boost the kiwi – ANZ.
On Tuesday, the Reserve Bank of Australia (RBA) will announce its Interest Rate Decision and release the Rate Statement. A sharp reaction in the positively-correlated AUD/USD pair could impact NZD/USD's movements during the Asian trading hours.
Technical levels to watch for
|Today last price||0.7143|
|Today Daily Change||-0.0008|
|Today Daily Change %||-0.11|
|Today daily open||0.7151|
|Previous Daily High||0.7171|
|Previous Daily Low||0.7104|
|Previous Weekly High||0.7171|
|Previous Weekly Low||0.6987|
|Previous Monthly High||0.7089|
|Previous Monthly Low||0.6805|
|Daily Fibonacci 38.2%||0.7145|
|Daily Fibonacci 61.8%||0.7129|
|Daily Pivot Point S1||0.7113|
|Daily Pivot Point S2||0.7074|
|Daily Pivot Point S3||0.7045|
|Daily Pivot Point R1||0.718|
|Daily Pivot Point R2||0.7209|
|Daily Pivot Point R3||0.7248|
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.