NZD/USD drops below 0.6650 as USD gathers strengh

Greenback shakes of the bearish pressure on Tuesday.
US Dollar Index recovers above 96.80 following Monday's drop.
Coming up: GDT auction in New Zealand, ISM Non-Manufacturing PMI data from US.

Eren Sengezer FXStreet

The NZD/USD pair came under renewed bearish pressure in the last hour amid broad-based USD strength. As of writing, the pair was trading at its lowest level in more than 10 days at 0.6642, losing 0.43% on a daily basis.

US Dollar Index pares Monday's losses

The poor performance of the EUR after the euro area inflation report on Tuesday seems to be helping the greenback find demand and outperform its rivals. The US Dollar Index, which closed the previous day 0.28% lower, gained traction and was last up 0.2% on the day at 96.81.

In the second half of the day, the ISM will release its Non-Manufacturing PMI from the US. Other data featured in the US economic docket will include Factory Orders and Trade Balance. Additionally, the bi-weekly Global Dairy Trade (GDT) auction from New Zealand will be looked upon for fresh impetus as well.

In the meantime, investors will be keeping an eye on fresh developments surrounding the US-Iran conflict. A negative shift in the market sentiment could weigh on the risk-sensitive NZD and cause the pair to stretch lower.

Technical levels to watch for

NZD/USD

Overview
Today last price	0.6641
Today Daily Change	-0.0031
Today Daily Change %	-0.46
Today daily open	0.6672

Trends
Daily SMA20	0.6639
Daily SMA50	0.6509
Daily SMA100	0.6425
Daily SMA200	0.6521

Levels
Previous Daily High	0.6681
Previous Daily Low	0.6644
Previous Weekly High	0.6756
Previous Weekly Low	0.6643
Previous Monthly High	0.6756
Previous Monthly Low	0.6424
Daily Fibonacci 38.2%	0.6667
Daily Fibonacci 61.8%	0.6658
Daily Pivot Point S1	0.665
Daily Pivot Point S2	0.6629
Daily Pivot Point S3	0.6613
Daily Pivot Point R1	0.6687
Daily Pivot Point R2	0.6703
Daily Pivot Point R3	0.6724

Author

Eren Sengezer

FXStreet

As an economist at heart, Eren Sengezer specializes in the assessment of the short-term and long-term impacts of macroeconomic data, central bank policies and political developments on financial assets.

EUR/USD stays below 1.1850 after dismal German sentiment data

EUR/USD stays in negative territory below 1.1850 in the second half of the day on Tuesday. Renewed US Dollar strength, combined with a softer risk tone keep the pair undermined alongside downbeat German ZEW sentiment readings for February.

GBP/USD falls toward 1.3550, pressured by weak UK jobs report

GBP/USD remains under bearish pressure and extends its decline below 1.3600 on Tuesday. The United Kingdom employment data suggested worsening labor market conditions, bolstering bets for a BoE interest rate cut next month and making it difficult for Pound Sterling to stay resilient against its peers.

Gold recovers modestly, stays deep in red below $4,950

Gold (XAU/USD) stages a rebound but remains deep in negative territory below $4,950 after touching its weakest level in over a week near $4,850 earlier in the day. Renewed US Dollar strength makes it difficult for XAU/USD to gather recovery momentum despite the risk-averse market atmosphere.

Canada CPI expected to show sticky inflation in January, still above BoC’s target

Economists see the headline CPI rising by 2.4% in a year to January, still above the BoC’s target and matching December’s increase. On a monthly basis, prices are expected to rise by 0.1%.

UK jobs market weakens, bolstering rate cut hopes

In the UK, the latest jobs report made for difficult reading. Nonetheless, this represents yet another reminder for the Bank of England that they need to act swiftly given the collapse in inflation expected over the coming months.

Stellar mixed sentiment caps recovery

Stellar price remains under pressure, trading at $0.170 on Tuesday after failing to close above the key resistance on Sunday. The derivatives metric supports the bearish sentiment, with XLM’s short bets rising among traders and funding rates turning negative.