NZD/USD drops to session lows below 0.7050 ahead of Fedspeak

NZD/USD turned south after closing in the positive territory on Thursday.
US Dollar Index posts modest gains near 93.20.
FOMC Chairman Jerome Powell is scheduled to deliver a speech at 1400 GMT.

Eren Sengezer FXStreet

The risk-positive market environment and the broad-based USD weakness helped the NZD/USD pair close in the positive territory on Thursday. However, the pair lost its traction on Friday and was last seen trading at a fresh session low of 0.7040, losing 0.35% on the day.

Focus shifts to Powell speech at Fed Listens

The cautious market mood ahead of the weekend seems to be helping the greenback stay resilient against its rivals. The US Dollar Index (DXY), which lost 0.38% on Thursday, is posting modest daily gains at 93.17. In the meantime, the S&P Futures and Nasdaq Futures are down 0.35% and 0.5%, respectively, suggesting that the DXY is likely to edge higher in case Wall Street's main indexes remain on the back foot after the opening bell.

Earlier in the day, the data from New Zealand showed that that the trade deficit narrowed in August but failed to help the NZD find demand.

There won't be any high-tier macroeconomic data releases featured in the US economic docket in the remainder of the day but FOMC Chairman Jerome Powell's speech at the Fed Listens event at 1400 GMT will be watched closely by market participants. Federal Reserve Vice Chair Richard Clarida and Federal Reserve Governor Michelle Bowman will also be speaking following Powell's opening remarks.

Technical levels to watch for

NZD/USD

Overview
Today last price	0.7041
Today Daily Change	-0.0027
Today Daily Change %	-0.38
Today daily open	0.7068

Trends
Daily SMA20	0.7075
Daily SMA50	0.7012
Daily SMA100	0.7068
Daily SMA200	0.7116

Levels
Previous Daily High	0.7094
Previous Daily Low	0.6982
Previous Weekly High	0.7151
Previous Weekly Low	0.7025
Previous Monthly High	0.7089
Previous Monthly Low	0.6805
Daily Fibonacci 38.2%	0.7051
Daily Fibonacci 61.8%	0.7025
Daily Pivot Point S1	0.7002
Daily Pivot Point S2	0.6936
Daily Pivot Point S3	0.6889
Daily Pivot Point R1	0.7114
Daily Pivot Point R2	0.716
Daily Pivot Point R3	0.7226

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.

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