NZD/USD extends daily slide to fresh multi-month lows near 0.7000

NZD/USD continues to push lower following Wednesday's drop.
US Dollar Index closes in on 92.00 ahead of mid-tier data.
Hawkish shift seen in FOMC's Summary of Projections boosts USD.

Eren Sengezer FXStreet

The NZD/USD pair lost nearly 70 pips on Wednesday as the USD gathered strength on the back of the hawkish shift witnessed in policymakers' outlook in the Summary of Projection. With the greenback rally remaining intact on Thursday, the pair extended its slide and was last seen trading at its lowest level since April 13 at 0.7051, losing 0.48% on a daily basis.

DXY preserves bullish momentum

The Fed's dot plot revealed that the number of policymakers who expect a rate hike in 2022 rose to seven from four in March. Furthermore, 13 policymakers are now seeing a rate hike in 2023, compared to seven in the previous publication.

Reflecting the positive impact of this development on the USD, the US Dollar Index (DXY) rose 1% and registered its biggest one-day percentage gain of the year. Currently, the DXY is at its highest level in two months at 91.78, up 0.43% on the day.

Later in the session, the weekly Initial Jobless Claims data and the Federal Reserve Bank of Philadelphia's Manufacturing Survey for June will be looked upon for fresh impetus.

On the other hand, the data from New Zealand revealed on Thursday that the Gross Domestic Product (GDP) grew by 2.4% in the first quarter. Although this reading beat the market expectation for an expansion of 0.9% by a wide margin, the broad-based USD strength didn't allow NZD/USD to gain traction.

Technical levels to watch for

NZD/USD

Overview
Today last price	0.7015
Today Daily Change	-0.0037
Today Daily Change %	-0.52
Today daily open	0.7052

Trends
Daily SMA20	0.7202
Daily SMA50	0.7191
Daily SMA100	0.718
Daily SMA200	0.7037

Levels
Previous Daily High	0.7156
Previous Daily Low	0.7042
Previous Weekly High	0.7244
Previous Weekly Low	0.7115
Previous Monthly High	0.7317
Previous Monthly Low	0.7115
Daily Fibonacci 38.2%	0.7086
Daily Fibonacci 61.8%	0.7113
Daily Pivot Point S1	0.7011
Daily Pivot Point S2	0.697
Daily Pivot Point S3	0.6897
Daily Pivot Point R1	0.7124
Daily Pivot Point R2	0.7197
Daily Pivot Point R3	0.7238

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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