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NZD/USD flirts with two-day lows, holds above mid-0.7200s

  • NZD/USD witnessed some selling for the second consecutive session amid stronger USD.
  • An uptick in the US bond yields, weaker risk sentiment underpinned the safe-haven USD.

The NZD/USD pair remained depressed through the early European session and was last seen trading near the lower end of its intraday trading range, around mid-0.7200s.

The pair edged lower for the second consecutive session on Tuesday and extended the previous day's modest pullback from levels just above the 0.7300 mark, or the highest since February 26. A combination of factors assisted the US dollar to move further away from two-and-half-month lows, which, in turn, exerted some pressure on the NZD/USD pair.

As investors looked past Friday's disappointing US monthly jobs report, the USD found some support from a modest uptick in the US Treasury bond yields. Apart from this, a sharp fall in the global equity markets forced investors to take refuge in the safe-haven greenback and further contributed to driving flows away from the perceived riskier kiwi.

The global risk sentiment took a hit amid speculations that rising inflation might force the Fed to tighten its monetary policy sooner rather than later. That said, the recent upsurge in commodity prices might continue to act as a tailwind for the New Zealand dollar and help limit any deeper losses for the NZD/USD pair, at least for the time being.

This makes it t prudent to wait for some strong follow-through selling before confirming that the NZD/USD pair has topped out in the near term and positioning for any meaningful corrective slide.

Meanwhile, there isn't any major market-moving economic data due for release from the US on Tuesday. Hence, the US bond yields will continue to play a key role in influencing the USD price dynamics. Apart from this, traders might further take cues from the broader market risk sentiment to grab some short-term opportunities around the NZD/USD pair.

Technical levels to watch

NZD/USD

Overview
Today last price0.726
Today Daily Change-0.0021
Today Daily Change %-0.29
Today daily open0.7281
 
Trends
Daily SMA200.7195
Daily SMA500.714
Daily SMA1000.7167
Daily SMA2000.6959
 
Levels
Previous Daily High0.7306
Previous Daily Low0.726
Previous Weekly High0.7301
Previous Weekly Low0.7115
Previous Monthly High0.7287
Previous Monthly Low0.6945
Daily Fibonacci 38.2%0.7278
Daily Fibonacci 61.8%0.7288
Daily Pivot Point S10.7259
Daily Pivot Point S20.7236
Daily Pivot Point S30.7213
Daily Pivot Point R10.7305
Daily Pivot Point R20.7328
Daily Pivot Point R30.7351

Author

Haresh Menghani

Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.

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