NZD/USD depressed below 0.6900, poor NZ retail sales still weigh

NZ retail sales data disappointed.
Risk-off sentiment weighs.
Downside capped by recent USD weakness.

Dhwani Mehta FXStreet

The NZD/USD pair stalled its post-NZ retail sales induced slide just ahead of the daily pivot of 0.6863, and now consolidates losses amid mixed market sentiment.

NZD/USD: 0.6900 – a tough nut to crack

The Kiwi brought an end to its three-day rebound and reversed from five-day tops of 0.6894 after the disappointing NZ retail sales release weighed negatively on the sentiment around the NZD. NZ: Retail spending quiet in the September quarter

Moreover, mixed Asian equities combined with subdued oil prices also dampens the demand for higher-yielding currency NZD, which also collaborated to the latest leg lower in the spot.

However, the losses appear restricted amid ongoing weakness seen around the US dollar against its main competitors, following downbeat US durable goods data and Fed’s inflation caution. The USD index trades almost unchanged at 93.15, flirting with monthly lows of 93.12 reached in the overnight trades.

Meanwhile, markets digest the latest NZ political headlines, citing that the government has announced the tax working group, which will consider will consider changes to GST and also Capital Gains Tax.

Later today, the pair will track the USD dynamics and risk trends amid slowing volumes, as the US markets remain closed in observance of Thanksgiving Day.

NZD/USD Levels to consider

The NZD finds support at 0.6863 (daily pivot), below which 0.6851 (10-DMA) and 0.6790 (classic S2/ Fib S3) are key near-term downside areas. To the topside, a break above 0.6900 (round number) could open doors towards 0.6992 (50-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.

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