NZD/USD extends correction, rises toward 0.7050


  • NZD/USD is pushing higher for the third straight day.
  • US Dollar Index struggles to stage a convincing rebound.
  • Eyes on IHS Markit's preliminary PMI reports for US.

Following Monday's decisive recovery, the NZD/USD pair preserved its bullish momentum on Tuesday and gained 35 pips. On Wednesday, the pair continues to edge higher and was last seen gaining 0.23% on the day at 0.7038.

USD fails to capitalize on Powell's testimony

The broad-based selling pressure surrounding the USD and the upbeat market mood on Tuesday helped NZD/USD close in the positive territory. Although FOMC Chairman Jerome Powell refrained from delivering any comments on the policy outlook, he adopted a less-concerned tone with regards to inflation and made it difficult for the greenback to find demand. Moreover, major equity indexes in the US managed to post daily gains, putting additional weight on the US Dollar Index (DXY).

Later in the day, the IHS Markit will publish the preliminary June Manufacturing and Services PMI reports. Investors expect the data to show an ongoing expansion in both sectors but investors will pay close attention to developments on price pressures. The US Census Bureau will release the New Home Sales figures for May as well. Ahead of these data, the DXY is staying flat on the day around 91.70.

There won't be any high-tier data releases from New Zealand and the USD's market valuation is likely to remain the primary driver of NZD/USD's movements. Meanwhile, Wall Street's main indexes remain on track to start the day little changed.

Technical levels to watch for

NZD/USD

Overview
Today last price 0.7036
Today Daily Change 0.0009
Today Daily Change % 0.13
Today daily open 0.7027
 
Trends
Daily SMA20 0.7159
Daily SMA50 0.7186
Daily SMA100 0.7173
Daily SMA200 0.7043
 
Levels
Previous Daily High 0.7037
Previous Daily Low 0.6963
Previous Weekly High 0.7161
Previous Weekly Low 0.6923
Previous Monthly High 0.7317
Previous Monthly Low 0.7115
Daily Fibonacci 38.2% 0.7009
Daily Fibonacci 61.8% 0.6991
Daily Pivot Point S1 0.6981
Daily Pivot Point S2 0.6935
Daily Pivot Point S3 0.6907
Daily Pivot Point R1 0.7055
Daily Pivot Point R2 0.7083
Daily Pivot Point R3 0.7129

 

 

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Feed news

Latest Forex News


Latest Forex News

Editors’ Picks

EUR/USD remains depressed below 1.1850 after the Fed's taper talk

EUR/USD is trading under 1.1850, hit by hawkish comments by the Fed's Clarida and Daly. The bank is nearing tapering its bond-buying scheme, a move that could happen this year. US jobless claims and a speech from the Fed's Waller are eyed.

EUR/USD News

GBP/USD flirts with 1.3900 ahead of the BOE's Super Thursday

GBP/USD is licking its wounds around 1.3900 ahead of the BOE’s Super Thursday rate decision in which it also releases new forecasts. Declining covid cases are supporting sterling while hawkish comments from the Fed's Clarida are boosting the dollar.

GBP/USD News

XAU/USD off highs, steady around $1810 ahead of BOE, US data

Gold price is trading almost unchanged on the day, unable to hold at higher levels, despite the latest pullback in the US dollar across the board. The cautious tone across the European markets fuelled the risk-off flows in the US Treasuries, downing the yields alongside the dollar.

Gold News

Cryptocurrency markets make comeback as BTC bulls resurface

Bitcoin price taking a second attempt at an upswing to retest $42,451. Ethereum price has flipped a crucial resistance level at $2,640 into a support barrier.

Read more

Bank of England Preview: Five reasons the doves are set to win Super Thursday

An epic battle between hawks and doves on Super Thursday? That is a dramatic way to view the Bank of England's upcoming rate decision – yet there are good reasons to expect doves to carry the day. That would send sterling down. 

Read more

Forex MAJORS

Cryptocurrencies

Signatures