NZD/USD drops back to 0.6875 on downbeat NZ data

Dhwani Mehta FXStreet

The steady recovery in NZD/USD pair met fresh supply just below 0.69 handle, with downbeat ANZ business confidence data now pushing the rate towards daily lows reached at 0.6875.

The sentiment around the Kiwi remains weighed down by poor NZ fundamentals, in the wake of below estimates trading surplus figures and weaker business confidence data. New Zealand ANZ Business Confidence down to 11 in April from previous 11.3

Moreover, risk-off seeps back into Asia amid negative Asian stocks and latest comments from the US President Trump on North Korea, keeps any bounce in the risk currency – NZD short-lived.

Further, the spot also feels the heat of a broad based US dollar recovery, as attention now turns towards the key US Q1 GDP data due later in the NA session.

NZD/USD Levels to consider

To the upside, the next resistance is located at 0.6890/0.6900 (daily top/ round number), above which it could extend gains to 0.6920/24 (classic R1/ 5-DMA) and from there to 0.6976/89 (10 & 20-DMA/ 50-DMA). To the downside immediate support might be located at 0.6948 (10-month lows), and from there to 0.6811 (classic S2/ Fib S3), below 0.6750 (psychological levels) would be tested.

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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