- The NZD/USD is down 0.32 percent in Asia, while the S&P 500 futures are reporting a 0.48 percent drop.
- The USD is on the rise against most majors as the USD/CNH remains bid, despite the rally in the Chinese stocks.
At press time, the pair is trading at the session low of 0.6543 - down 0.32 percent on the day - having registered a 0.86 percent drop yesterday.
The losses the NZD and other risk currencies are likely associated with the dark mood in the equities. For instance, the S&P 500 futures are down 0.42 percent at press time. Further, Japan's Topix is down 1 percent and Australia's S&P /ASX 200 has shed 0.6 percent.
Meanwhile, the losses in Chinese yuan could be adding to the bearish pressure around the NZD/USD pair. Moreover, the risk-on rally in the Chinese stocks has not translated into CNY (or CNH) strength, leaving the USD/CNH (offshore yuan exchange rate) on the path toward the major psychological hurdle of 7.00.
Should the CNY witness a sudden reversal in fortunes, then the NZD and other risk currencies will likely pick up a strong bid.
NZD/USD Technical Levels
Resistance: 0.6562 (50% Fib R of 0.67/0.6424), 0.6594 (61.8% Fib R of 0.67/0.6424), 0.6599 (50-day EMA)
Support: 0.6538 (38.2% Fib R of 0.6424/0.6611), 0.6523 (Oct. 19 low), 0.65 (psychological level)
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