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NZD/USD extends sideways grind above 0.7000

  • NZD/USD struggles to find direction at the start of the week.
  • US Dollar Index stays flat above 92.00 in quiet day.
  • Financial markets in US will remain closed due to Independence Day holiday.

Despite a decisive rebound on Friday, the NZD/USD pair closed the previous week in the negative territory and seems to be having a difficult time extending its recovery on Monday. As of writing, the pair was down 0.1% on a daily basis at 0.7020.

DXY holds comfortably above 92.00

In the absence of high-tier data releases and fundamental drivers, the USD's valuation continues to affect NZD/USD's movements. The mixed June jobs report from the US on Friday triggered a USD selloff and the US Dollar Index (DXY) lost 0.3%. On Monday, the DXY is moving sideways above 92.20, not allowing NZD/USD to turn north.

Financial markets in the US will be closed due to the Independence Day holiday and the market action is likely to remain subdued.

On the other hand, the NZIER Business Confidence Index data for the second quarter will be released from New Zealand on Tuesday. Earlier in the day, the ANZ Commodity Price Index arrived at 0.8% in June, compared to analysts' estimate of 1.2%, but this reading was largely ignored by market participants.

Meanwhile, the Reserve Bank of Australia (RBA) will announce its policy decisions and a significant reaction in the positively-correlated AUD/USD pair could impact NZD/USD's action.

Technical levels to watch for

NZD/USD

Overview
Today last price0.702
Today Daily Change-0.0010
Today Daily Change %-0.14
Today daily open0.703
 
Trends
Daily SMA200.707
Daily SMA500.7162
Daily SMA1000.7158
Daily SMA2000.7058
 
Levels
Previous Daily High0.7039
Previous Daily Low0.6947
Previous Weekly High0.7087
Previous Weekly Low0.6947
Previous Monthly High0.7289
Previous Monthly Low0.6923
Daily Fibonacci 38.2%0.7004
Daily Fibonacci 61.8%0.6982
Daily Pivot Point S10.6972
Daily Pivot Point S20.6914
Daily Pivot Point S30.688
Daily Pivot Point R10.7063
Daily Pivot Point R20.7097
Daily Pivot Point R30.7155

Author

Eren Sengezer

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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