NZD/USD extends daily slide toward 0.7100 on modest DXY rebound

NZD/USD is staging a correction following Thursday's upsurge.
US Dollar Index recovers toward 90.00 during European session.
Business confidence in New Zealand improved sharply in December.

Eren Sengezer FXStreet

The NZD/USD pair climbed to its highest level since May 2018 at 0.7172 on Thursday but reversed its direction on the last day of the week. As of writing, the pair was down 0.42% on a daily basis at 0.7118.

DXY edges higher on Friday

The USD's market valuation remains the primary driver of NZD/USD's movements. The greenback struggled to find demand throughout the week and touched its lowest level in nearly 32 months at 89.73 on Thursday. Heightened hopes for a US stimulus bill allowed both the S&P 500 and the Nasdaq Composite to surge to fresh record highs and made it difficult for USD to attract investors.

However, renewed concerns over a no-deal Brexit triggered a sharp decline in the GBP/USD pair and helped the DXY stage a rebound on Friday. At the moment, the index is clinging to modest daily gains near 90.

Earlier in the day, the data from New Zealand showed that the ANZ Business Confidence in December improved sharply to 9.4 from -6.9 in November and the ANZ Activity Outlook surged to 21.7% from 9.1%. Nevertheless, the kiwi failed to capitalize on these upbeat figures.

There won't be any significant macroeconomic data releases from the US in the second half of the day.

Technical levels to watch for

NZD/USD

Overview
Today last price	0.7119
Today Daily Change	-0.0027
Today Daily Change %	-0.38
Today daily open	0.7146

Trends
Daily SMA20	0.7043
Daily SMA50	0.6851
Daily SMA100	0.6741
Daily SMA200	0.6488

Levels
Previous Daily High	0.7172
Previous Daily Low	0.7083
Previous Weekly High	0.7114
Previous Weekly Low	0.7005
Previous Monthly High	0.7052
Previous Monthly Low	0.6589
Daily Fibonacci 38.2%	0.7138
Daily Fibonacci 61.8%	0.7117
Daily Pivot Point S1	0.7095
Daily Pivot Point S2	0.7045
Daily Pivot Point S3	0.7007
Daily Pivot Point R1	0.7184
Daily Pivot Point R2	0.7222
Daily Pivot Point R3	0.7272

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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