NZD/USD falls below 0.7050 as risk rally loses steam

  • NZD/USD is edging lower during the European session on Wednesday.
  • US Dollar Index stays relatively quiet above 92.20.
  • 10-year US Treasury bond yield is posting small gains ahead of FOMC Minutes.

The NZD/USD pair pushed lower on Tuesday but managed to stage a rebound during the American trading hours before closing virtually unchanged at 0.7057. With investors turning cautious on Wednesday, the pair lost its traction and was last seen losing 0.27% on a daily basis at 0.7040.

During the Asian session, the data from New Zealand showed that the ANZ Commodity Price Index rose by 6.1% in March. This reading beat the market expectation of 2.7% by a wide margin but was largely ignored by market participants.

Currently, the Euro Stoxx 50 Index is down 0.3% on the day and the S&P 500 Futures are flat at 4,063 confirming the view that risk flows are struggling to dominate the financial markets. In the meantime, the benchmark 10-year US Treasury bond yield is up 0.65% on the day after losing more than 3% on Tuesday, helping the greenback show resilience. At the moment, the US Dollar Index down 0.04% at 92.26.

Later in the session, the FOMC will release the minutes of its March 16-17 meeting and US President Joe Biden will deliver an update on his spending plans.

NZD/USD near-term outlook

Credit Suisse analysts think that NZD/USD will continue to fluctuate in a neutral range between 0.6870 and 0.7200 in the near term.

"New Zealand’s vaccine rollout is lagging the rest of the developed world; investors might now reassess the validity of NZ’s so-far successful strategy of micro-lockdowns," analysts noted. “Given how responsive the currency has been to changes in expectations around non-traditional monetary policy, we think the RBNZ may prefer to tiptoe around the possibility of tightening in order to avoid an unwelcome rally in the NZD.” 

Technical levels to watch for


Today last price 0.7037
Today Daily Change -0.0018
Today Daily Change % -0.26
Today daily open 0.7055
Daily SMA20 0.7088
Daily SMA50 0.7172
Daily SMA100 0.7136
Daily SMA200 0.689
Previous Daily High 0.707
Previous Daily Low 0.7007
Previous Weekly High 0.7055
Previous Weekly Low 0.6945
Previous Monthly High 0.7308
Previous Monthly Low 0.6943
Daily Fibonacci 38.2% 0.7046
Daily Fibonacci 61.8% 0.7031
Daily Pivot Point S1 0.7018
Daily Pivot Point S2 0.6981
Daily Pivot Point S3 0.6955
Daily Pivot Point R1 0.7081
Daily Pivot Point R2 0.7107
Daily Pivot Point R3 0.7144



Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.

Feed news

Get Weekly Crypto trade ideas!  
Empower yourself with the best market insights

Join FXStreet Premium!    

Latest Forex News

Latest Forex News

Editors’ Picks

EUR/USD retains weekly gains trades above 1.2000

EUR/USD peaked at 1.2079, now stable in the 1.2030 region. The shared currency holds on to recent gains despite renewed demand for its American rival.


GBP/USD retreats from 1.40 despite upbeat UK job figures

GBP/USD is extending its falls after retreating from 1.40 as the dollar edges higher. Earlier, the UK reported a drop in the unemployment rate to 4.9%, better than expected. The Claimant Count Change also beat estimates with 10.1K. 


XAU/USD clings to modest gains around $1,780 despite USD strength

The XAU/USD gained traction in the early American session and climbed to a daily high of $1,780. Although the greenback started to gather strength in the second half of the day, the pair stayed relatively resilient and was last seen rising 0.35% on the day at $1,778.

Gold News

WeWork and Venmo join the Bitcoin craze while prices consolidate

The announcement by WeWork that it will begin accepting payments in select cryptocurrencies, including Bitcoin, Ethereum, USD Coin, Paxos, and several others, is another sign of adoption and follows the decision by Tesla to do the same

Read more

Bank of Canada Preview: Dovish surprise to lift USD/CAD

The Bank of Canada is widely expected to keep its policy rate unchanged at 0.25% on Wednesday. However, the improving economic outlook and recent remarks from officials suggest that the BoC could become the first major central bank to lay out a roadmap out of the ultra-loose policy.

Read more