NZD/USD dips below 200-hour SMA on risk aversion

  • NZD/USD drops 0.23% in Asia after failing to break above 0.66 on Thursday. 
  • Risk-off action in the equity market bodes well for the safe-haven US dollar. 
  • Fed's balance sheet size drops below $7 trillion, could add to bearish tone around equities. 

The NZD/USD pair is extending overnight losses with the US dollar continuing to draw haven bids amid losses in the equity markets. 

Currently, the pair is trading near the 200-hour simple moving average at 0.6517, having printed a session low of 0.6546 soon before press time. 


The US stocks dropped on Thursday as the continued spread of coronavirus threatened prospects of V-shaped economic recovery. 

Anthony Fauci, director of the National Institute of Allergy and Infectious Diseases said that states of Texas, Florida, and California, where cases are rising at a faster rate, should opt to pause reopening measures and rather go for a complete shutdown. 

In addition, oil prices fell sharply, pushing the energy stocks lower and adding to bearish pressures around the broader equity markets. 

At press time, the futures tied to the S&P 500 are flatlined, however, stocks in Japan, Australia, and South Korea are flashing red and keeping risk assets under pressure. 

The risk aversion may worsen on Friday, fueling deeper losses in NZD/USD, as the Federal Reserve’s balance sheet size is decreasing with the fall in demand for emergency liquidity measures. 

Technical levels


Today last price 0.6553
Today Daily Change -0.0017
Today Daily Change % -0.26
Today daily open 0.657
Daily SMA20 0.6477
Daily SMA50 0.631
Daily SMA100 0.6187
Daily SMA200 0.6335
Previous Daily High 0.6601
Previous Daily Low 0.6551
Previous Weekly High 0.6539
Previous Weekly Low 0.6385
Previous Monthly High 0.6585
Previous Monthly Low 0.6186
Daily Fibonacci 38.2% 0.657
Daily Fibonacci 61.8% 0.6582
Daily Pivot Point S1 0.6547
Daily Pivot Point S2 0.6524
Daily Pivot Point S3 0.6497
Daily Pivot Point R1 0.6597
Daily Pivot Point R2 0.6624
Daily Pivot Point R3 0.6647



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.

Feed news

FXStreet Trading Signals now available!

Access to real-time signals, community and guidance now!

Latest Forex News

Latest Forex News

Editors’ Picks

EUR/USD recovers towards 1.1750 as risk-on rules

EUR/USD is back around 1.1750 as upbeat US data fueled equities' early rally. Concerns about economic progress remain in the background, as the pandemic keeps taking its toll. 


GBP/USD bounces from 1.30 as demand for the dollar eases

Dollar's corrective advance seems complete, now down against most major rivals. GBP/USD trades little changed for a second consecutive day in the 1.3060/70 price zone. Market players continue to ignore upcoming Brexit chaos.


Gold: Interesting Fibonacci extension projects a move to $2500

Gold has risen 10.74% in the month of July, the biggest monthly increase since February 2016. As the price is breaking all-time highs it's hard to say where the yellow metal could end up.

Gold News

ETH/BTC skyrocketing, Bitcoin stays above $11,000

The cryptocurrency market is influenced by leveraged positions liquidation. Cryptocurrency experts expect further growth amid a global flight to safety assets. ETH/BTC hits the highest level since May 2019.

Read more

WTI drops below $40 on demand worries, OPEC+ output increase

Crude oil prices posted losses last week and seem to be struggling to shake off the bearish pressure on Monday. As of writing, the barrel of West Texas Intermediate (WTI) was trading at $39.85, losing 1.5% on a daily basis.

Oil News