NZD/USD edges lower to mid-0.6600s despite improving market mood

NZD/USD is edging lower following Friday's strong upsurge.
US Dollar Index is clinging to modest gains above 93.00.
Wall Street looks to open in the positive territory.

Eren Sengezer FXStreet

The NZD/USD closed the previous week little changed and continues to have a difficult time making a decisive move in either direction on Monday. As of writing, the pair was down 0.18% on a daily basis at 0.6653.

DXY posts modest recovery gains on Monday

Over the weekend, the People's Bank of China (PBoC) announced its decision to lower its reserve requirement ratio to zero for some forex exchange forwards trading with an aim to curb yuan's strength. The selloff witnessed in yuan at the start of the week made it difficult for the China-proxy kiwi to stay resilient against its rivals.

On the other hand, the greenback started the week on a firm footing with the US Dollar Index (DXY) staying in the positive territory above 93.00 and allowed the bearish pressure on NZD/USD to remain intact.

However, the S&P 500 futures are currently up 0.7% on a daily basis, suggesting that Wall Street is likely to open in the positive territory. Although the trading action in foreign exchange markets is expected to remain subdued due to the Columbus Day holiday, a sharp upsurge in US equity indexes could cause the DXY to erase its gains.

There won't be any macroeconomic data releases from New Zealand on Tuesday and the greenback's market valuation is expected to continue to impact NZD/USD's movements.

Technical levels to watch for

NZD/USD

Overview
Today last price	0.6651
Today Daily Change	-0.0008
Today Daily Change %	-0.12
Today daily open	0.6659

Trends
Daily SMA20	0.6634
Daily SMA50	0.6631
Daily SMA100	0.6559
Daily SMA200	0.6389

Levels
Previous Daily High	0.6674
Previous Daily Low	0.6574
Previous Weekly High	0.6674
Previous Weekly Low	0.6546
Previous Monthly High	0.6799
Previous Monthly Low	0.6511
Daily Fibonacci 38.2%	0.6636
Daily Fibonacci 61.8%	0.6612
Daily Pivot Point S1	0.6597
Daily Pivot Point S2	0.6536
Daily Pivot Point S3	0.6497
Daily Pivot Point R1	0.6698
Daily Pivot Point R2	0.6736
Daily Pivot Point R3	0.6798

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: Bears retain control below 1.1780-1.1770 confluence breakpoint

The EUR/USD pair remains on the back foot through the Asian session on Friday and currently trades just above mid-1.1700s, well within striking distance of a nearly one-month low set the previous day.

GBP/USD seems vulnerable near one-month low vs. USD as traders await US data

The GBP/USD pair prolongs its weekly downtrend for the fifth consecutive day on Friday and slides back closer to a nearly one-month low, touched the previous day. Spot prices trade below mid-1.3400s during the Asian session on Friday and seem vulnerable to slide further as traders now look to important US macro data for a fresh impetus.

Gold eyes next breakout on US GDP, PCE inflation data

Gold sticks to recent gains around the $5,000-mark early Friday, biding time before the high-impact US macro events. The focus is now on the US fourth-quarter Gross Domestic Product, core Personal Consumption Expenditures Price Index and the Supreme Court’s ruling on President Donald Trump’s tariffs.

Bitcoin, Ethereum and Ripple remain range-bound as breakdown risks rise

Bitcoin, Ethereum, and Ripple are trading sideways within consolidation ranges on Friday, signaling a lack of directional bias in the broader crypto market. BTC rebounded from key support, and ETH is nearing the lower consolidation boundary, while XRP is holding at its lower trendline boundary.

Hawkish Fed minutes and a market finding its footing

It was green across the board for US Stock market indexes at the close on Wednesday, with most S&P 500 names ending higher, adding 38 points (0.6%) to 6,881 overall. At the GICS sector level, energy led gains, followed by technology and consumer discretionary, while utilities and real estate posted the largest losses.

Injective token surges over 13% following the approval of the mainnet upgrade proposal

Injective price rallies over 13% on Thursday after the network confirmed the approval of its IIP-619 proposal. The green light for the mainnet upgrade has boosted traders’ sentiment, as the upgrade aims to scale Injective’s real-time Ethereum Virtual Machine architecture and enhance its capabilities to support next-generation payments.