NZD/USD drops below 0.7200 on US dollar rebound


  • NZD/USD refreshes intraday low amid a quiet Asian session.
  • US dollar consolidates the previous day’s losses amid pick-up in 3-year Treasury yields.
  • Israel-Palestine peace accord helps extend Wall Street gains, pre-PMI mood probe bulls.

NZD/USD takes offers around 0.7180, down 0.24% intraday, as sellers retake control during early Friday. Amid a lack of major catalysts at home, the kiwi pair follows AUD/USD moves and US Treasury yields for fresh impulse.

That said, AUD/USD drops 0.28% to refresh intraday low with 0.7752 by the press time. In doing so, the Aussie pair struggles to justify April’s upbeat preliminary Retail Sales for Australia amid mixed PMI figures from Commonwealth Bank for May. Other than the mixed data, Aussie fears from China’s Huawei 5G also seem to back the pair sellers.

On the other hand, the US 10-year Treasury yields remain directionless near 1.63% but the 3-year counterpart is on the way to post second weekly gains, around 0.33% by the press time.

US dollar index (DXY) takes clues from Treasury moves while consolidating the previous day’s losses, which in turn exert additional downside pressure on the NZD/USD prices.

It should be noted that earlier in Asia, New Zealand (NZ) Finance Minister Grant Robertson reiterated the wish to return to a “fiscally viable position” while also saying that a relationship with China is very important.

Amid these plays, S&P 500 Futures print mild gains and the stocks in Asia also refrain from catering bears, which in turn portrays a cautious optimism.

With a light calendar and dead feeds, NZD/USD traders may keep their eyes on the US PMIs amid hopes of witnessing another risk-on session during the US trading day.

Technical analysis

NZD/USD remains trapped inside a 100-pips area above 0.7150, forming a short-term triangle, with a 50-day SMA near 0.7140 acting as an additional downside filter.

Additional imoprtant levels

Overview
Today last price 0.7182
Today Daily Change -18 pips
Today Daily Change % -0.25%
Today daily open 0.72
 
Trends
Daily SMA20 0.7217
Daily SMA50 0.7141
Daily SMA100 0.7174
Daily SMA200 0.6983
 
Levels
Previous Daily High 0.7218
Previous Daily Low 0.7156
Previous Weekly High 0.7306
Previous Weekly Low 0.7134
Previous Monthly High 0.7287
Previous Monthly Low 0.6945
Daily Fibonacci 38.2% 0.7195
Daily Fibonacci 61.8% 0.718
Daily Pivot Point S1 0.7165
Daily Pivot Point S2 0.7129
Daily Pivot Point S3 0.7102
Daily Pivot Point R1 0.7227
Daily Pivot Point R2 0.7254
Daily Pivot Point R3 0.7289

 

 

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