NZD/USD extends recoveries to mid-0.6500s as trade sentiment stays firm


  • NZD/USD directs the previous two days’ upward trajectory towards 0.6600.
  • S&P 500 Futures prints a four-day winning streak after Monday’s biggest surge in three weeks.
  • Hopes of breaking the US stimulus deadlock, virus vaccine gain momentum, a light calendar probes the bulls.
  • The first debate of the American Presidential Election becomes important, comments from Fed speakers will also be followed closely.

NZD/USD seesaws around 0.6560, up 0.08% intraday, during the early Asian session on Tuesday. The kiwi pair benefited from the broad US dollar weakness and risk recovery the previous day. Though, a lack of major data/events keeps the bulls chained ahead of crucial catalysts.

US Congress progresses towards COVID-19 aid package talks…

With the House Democrats’ readiness to compromise on the earlier demands concerning the coronavirus (COVID-19) stimulus package, the halt to the American policymakers’ talks for the much-awaited aid is likely to be broken soon. The same joins the line of the European Central Bank (ECB) and British diplomats to keep the market’s risk-tone sentiment positive.

Also favoring the NZD/USD bulls are expectations that the COVID-19 cure will soon be rolled out. Additionally, the Fed policymakers’ dovish tone, a contrast to the RBNZ counterparts’ absence, offer extra reasons to propel the quote.

Even so, nearness to the US Presidential Election debate and a plethora of Fed speakers scheduled for crossing wires during the North American session question the risk-takers.

Hence, the S&P 500 Futures register 0.30 intraday gains to 3,356 while the US 10-year Treasury yields and New Zealand’s NZX 50 are both mildly positive by the time of the press.

Moving on, the Asian calendar doesn’t carry any major factors worth watching than the risk catalysts. As a result, the continuation of the latest pullback can be expected ahead of the US session. Though, any major positives for the greenback won’t be taken lightly.

Technical analysis

FXStreet’s Ross J Burland suggests the “wait and watch” approach for the bulls while saying,

At this stage, the conditions are still not ideal for entry as bulls would be prudent to wait until the momentum indicators are more bullish and price pulls away from the 21-moving average. The price will indeed need to move higher towards the Fibo targets, but bulls would be on the lookout for structure lower down below price from where a buy-in at a discount might be achieved on pullbacks. 

Read: NZD/USD Price Analysis: Bulls set on at least a 38.2% Fibonacci retracement

Additional important levels

Overview
Today last price 0.6562
Today Daily Change 17 pips
Today Daily Change % 0.26%
Today daily open 0.6545
 
Trends
Daily SMA20 0.6682
Daily SMA50 0.664
Daily SMA100 0.6504
Daily SMA200 0.6393
 
Levels
Previous Daily High 0.6594
Previous Daily Low 0.6525
Previous Weekly High 0.6778
Previous Weekly Low 0.6511
Previous Monthly High 0.6764
Previous Monthly Low 0.6488
Daily Fibonacci 38.2% 0.6567
Daily Fibonacci 61.8% 0.6551
Daily Pivot Point S1 0.6515
Daily Pivot Point S2 0.6485
Daily Pivot Point S3 0.6446
Daily Pivot Point R1 0.6584
Daily Pivot Point R2 0.6623
Daily Pivot Point R3 0.6653

 

 

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