NZD/USD fades bounce off six-week low near 0.6150 ahead of US Consumer Confidence, NFP


  • NZD/USD struggles to extend corrective pullback from 1.5-month low, steadies of late.
  • Recession woes, hawkish central bankers underpin bearish bias.
  • Market’s consolidation amid a light calendar triggered the Kiwi pair’s corrective bounce.
  • US CB Consumer Confidence for August, Fedspeak will be important for intraday directions.

NZD/USD treads water around 0.6150, after bouncing off a 1.5-month low and retreating from 0.6168, as traders await fresh clues during Tuesday’s Asian session. Alike other major currencies, the Kiwi also cheered the US dollar’s pullback from nearly a two-decade high amid Monday’s volatile session. The recovery moves, however, remain elusive amid fears of economic slowdown and hawkish central bankers.

Markets began the US Nonfarm Payrolls (NFP) week on a sour note and underpinned the US dollar as global central bankers raised economic slowdown fears but refrained from stepping back on the rate hike trajectory. Among them, the US Federal Reserve (Fed) Chairman Jerome Powell gained major attention and propelled the hawkish Fed bets, which in turn fuelled the US Dollar Index (DXY) to a fresh high in late 2002.

However, the corrective pullback in prices and a light calendar joined firmer US data to help portray a consolidation in the US dollar’s latest gains and favored the NZD/USD prices to recover. Even so, economic fears and nearly 73% chances of a 75 bps Fed rate hike in September, per CME’s FedWatch Tool, exert downside pressure on the quote of late.

That said, Dallas Fed Manufacturing Business Index improved to -12.9 versus -20.2 expected and -22.6 prior.

It should be noted that Minneapolis Federal Reserve Bank President Neel Kashkari stated that people now understand how serious we are about getting inflation back to 2%.

On a different page, China’s economic slowdown fears escalated amid the fresh Sino-American tussles over the Taiwan Strait and doubts about the capacity of stimulus to help trigger the economic recovery also weighed on the NZD/USD prices.

Against this backdrop, equities remain downbeat but the US 10-year Treasury yields grew nearly eight basis points (bps) to 3.11% at the latest.

Moving on, a light calendar at home emphasizes US Consumer Confidence for August and comments from Fed speakers as the main catalysts to watch for fresh impulse.

Technical analysis

A 12-day-old resistance line around 0.6185 restricts immediate NZD/USD upside ahead of the key 50-DMA hurdle surrounding 0.6230. That said, the 0.6100 round figure restricts the pair's short-term downside.

Additional IMPORTANT levels

Overview
Today last price 0.6153
Today Daily Change 0.0016
Today Daily Change % 0.26%
Today daily open 0.6137
 
Trends
Daily SMA20 0.6285
Daily SMA50 0.6248
Daily SMA100 0.6373
Daily SMA200 0.6582
 
Levels
Previous Daily High 0.6234
Previous Daily Low 0.6132
Previous Weekly High 0.6252
Previous Weekly Low 0.6132
Previous Monthly High 0.633
Previous Monthly Low 0.6061
Daily Fibonacci 38.2% 0.6171
Daily Fibonacci 61.8% 0.6195
Daily Pivot Point S1 0.6101
Daily Pivot Point S2 0.6065
Daily Pivot Point S3 0.5998
Daily Pivot Point R1 0.6203
Daily Pivot Point R2 0.627
Daily Pivot Point R3 0.6306

 

 

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