• NZD/USD turned negative for the fourth straight session amid a broad-based USD strength.
  • The upbeat US economic outlook, rallying US bond yields continued underpinning the USD.
  • A softer risk tone further weighed on the perceived riskier kiwi and favours bearish traders.

The NZD/USD pair extended its steady intraday descent through the early European session and refreshed daily lows, around the 0.7130-25 region in the last hour.

The pair failed to capitalize on Friday's bounce from sub-0.7100 level, or six-week lows, instead met with some fresh supply on the first day of a new trading week. The intraday pullback from the vicinity of the 0.7200 mark was sponsored by resurgent US dollar demand.

The USD stood tall near three-month tops and remained well supported by the prospects for a relatively faster US economic recovery. The upbeat outlook was reinforced by Friday's stunning US monthly jobs report, which surpassed even the most optimistic estimates.

Apart from this, a fresh leg up in the US Treasury bond yields provided an additional lift to the greenback. The US Senate passed a much-awaited $1.9 trillion pandemic relief package and pushed the yield on the benchmark 10-year US bond back closer to 1.60%.

Another sell-off in the US fixed income market, along with reports of attacks on Saudi Arabian oil production facilities weighed on the risk sentiment. This was seen as another factor that benefitted the safe-haven USD and undermined the perceived riskier kiwi.

The NZD/USD pair has now drifted into the negative territory for the fourth consecutive session and seems vulnerable to slide further. Sustained weakness below the 0.7100 mark will reaffirm the bearish bias and set the stage for an extension of the ongoing corrective slide.

There isn't any major major market-moving economic data due for release from the US on Monday. Hence, US bond yields and the broader market risk sentiment will influence the USD price dynamics, which, in turn, should allow traders to grab some opportunities around the NZD/USD pair.

Technical levels to watch

NZD/USD

Overview
Today last price 0.7129
Today Daily Change -0.0041
Today Daily Change % -0.57
Today daily open 0.717
 
Trends
Daily SMA20 0.7258
Daily SMA50 0.7205
Daily SMA100 0.7056
Daily SMA200 0.6819
 
Levels
Previous Daily High 0.7198
Previous Daily Low 0.7099
Previous Weekly High 0.7308
Previous Weekly Low 0.7099
Previous Monthly High 0.7466
Previous Monthly Low 0.7135
Daily Fibonacci 38.2% 0.7137
Daily Fibonacci 61.8% 0.716
Daily Pivot Point S1 0.7113
Daily Pivot Point S2 0.7057
Daily Pivot Point S3 0.7014
Daily Pivot Point R1 0.7212
Daily Pivot Point R2 0.7254
Daily Pivot Point R3 0.7311

 

 

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