NZD/USD drops to key support on risk-off, RBNZ Governor Orr's comments

NZD/USD tests former resistance-turned-support at 0.7315.
Rising yields weigh over stocks and put a bid under the US dollar.
RBNZ's Governor Orr says negative rates are an option.

Omkar Godbole FXStreet Contributor

NZD/USD extends Thursday's decline as the continued rise in the government bond yields keeps risk assets under pressure.

The Kiwi printed lows below the former resistance-turned-support of 0.7315 (Jan. 6 high) a few minutes before press time, having put in a multi-year high of 0.7464 on Thursday.

The 10-year US Treasury yield clocked a fresh 12-month high of 1.55% during the overnight trade, taking the year-to-date gain to over 50 basis points and spurring a rotation out of and retreat in stocks. The S&P 500 fell nearly 2.5%, putting a haven bid under the US dollar and pushing NZD/USD lower.

Reserve Bank of New Zealand's Governor Orr said early today that negative rates are an option, seemingly adding to bearish pressures around the NZD. The US airstrike on an Iranian-backed militant group in Syria likely boosted haven demand for the greenback.

NZD/USD is currently trading near 0.7350, representing a 0.25% drop on the day. Support at 0.7315 could be breached if the US yields continue to rise.

Technical levels

NZD/USD

Overview
Today last price	0.735
Today Daily Change	-0.0018
Today Daily Change %	-0.24
Today daily open	0.7368

Trends
Daily SMA20	0.7241
Daily SMA50	0.719
Daily SMA100	0.702
Daily SMA200	0.6787

Levels
Previous Daily High	0.7466
Previous Daily Low	0.736
Previous Weekly High	0.7316
Previous Weekly Low	0.7158
Previous Monthly High	0.7316
Previous Monthly Low	0.7096
Daily Fibonacci 38.2%	0.74
Daily Fibonacci 61.8%	0.7425
Daily Pivot Point S1	0.733
Daily Pivot Point S2	0.7292
Daily Pivot Point S3	0.7224
Daily Pivot Point R1	0.7436
Daily Pivot Point R2	0.7504
Daily Pivot Point R3	0.7542

Author

Omkar Godbole

FXStreet Contributor

Omkar Godbole, editor and analyst, joined FXStreet after four years as a research analyst at several Indian brokerage companies.

EUR/USD remains below 1.1850 after US data

EUR/USD struggles to gain traction and trades in a narrow range below 1.1850 on Wednesday. The US Dollar stays resilient against its rivals following the better-than-expected Durable Goods Orders and housing data, limiting the pair's upside ahead of FOMC Minutes.

GBP/USD stays in narrow channel above 1.3550 ahead of FOMC Minutes

GBP/USD holds its ground following Tuesday's slide and moves sideways above 1.3550 midweek. Although the data from the UK confirmed that inflation cooled in January, the positive shift seen in market mood helps the pair keep its footing as investors wait for the Fed to publish the minnutes of the January policy meeting.

Gold regains some shine, retargets $5,000 ahead of FOMC Minutes

Gold gathers fresh upside traction on Wednesday, leaving part of the weakness seen at the beginning of the week and refocusing its attention to the key $5,000 mark per troy ounce, all ahead of the release of the FOMC Minutes and despite the modest uptick in the US Dollar.

Pi Network rally defies market pressure ahead of its first anniversary

Pi Network is trading above $0.1900 at press time on Wednesday, extending the weekly gains by nearly 8% so far. The steady recovery is supported by a short-term pause in mainnet migration, which reduces pressure on the PI token supply for Centralized Exchanges. The technical outlook focuses on the $0.1919 resistance as bullish momentum increases.

Mixed UK inflation data no gamechanger for the Bank of England

Food inflation plunged in January, but service sector price pressure is proving stickier. We continue to expect Bank of England rate cuts in March and June. The latest UK inflation read is a mixed bag for the Bank of England, but we doubt it drastically changes the odds of a March rate cut.

Top 3 Price Prediction: Bitcoin, Ethereum, and Ripple face downside risk as bears regain control

Bitcoin, Ethereum, and Ripple remain under pressure on Wednesday, with the broader trend still sideways. BTC is edging below $68,000, nearing the lower consolidating boundary, while ETH and XRP also declined slightly, approaching their key supports.