• NZD/USD struggled to capitalize on the attempted recovery from a one-week low.
  • A softer risk tone was seen as a key factor that weighed on the perceived riskier kiwi.
  • Retreating US bond yields kept the USD bulls on the defensive and helped limit losses.

The NZD/USD pair seesawed between tepid gains/minor losses through the early European session and was last seen trading in the neutral territory, just below the 0.6800 mark.

The pair reversed an early dip to a one-week low, around the 0.6775 region, albeit struggled to capitalize on the attempted recovery amid a softer risk tone. The recent optimism over reports that the Omicron variant might be less severe than previously feared was overshadowed by uncertainty over the economic impact of the continuous surge in new COVID-19 cases. This, in turn, weighed on investors' sentiment, which was evident from a weaker trading sentiment around the equity markets and drove flows away from the perceived riskier kiwi.

The downside, however, remained cushioned, at least for the time being, amid subdued US dollar price action. The flight to safety led to a modest decline in the US Treasury bond yields, which, in turn, was seen as a key factor that kept the USD bulls on the defensive. That said, the Fed's hawkish outlook, indicating at least three rate hikes next year, acted as a tailwind for the greenback and kept a lid on any meaningful gains for the NZD/USD pair.

Moreover, investors also seemed reluctant to place aggressive directional bets amid thin year-end trading conditions. Market participants now look forward to the US economic docket, featuring the second-tier releases of the November Goods Trade Balance, Wholesale Inventories and Pending Home Sales data. This, along with the US bond yields and the broader market risk sentiment, will influence the USD and provide some impetus to the NZD/USD pair.

Technical levels to watch

NZD/USD

Overview
Today last price 0.679
Today Daily Change -0.0013
Today Daily Change % -0.19
Today daily open 0.6803
 
Trends
Daily SMA20 0.6784
Daily SMA50 0.6947
Daily SMA100 0.6978
Daily SMA200 0.7036
 
Levels
Previous Daily High 0.683
Previous Daily Low 0.6788
Previous Weekly High 0.6891
Previous Weekly Low 0.6702
Previous Monthly High 0.7199
Previous Monthly Low 0.6773
Daily Fibonacci 38.2% 0.6804
Daily Fibonacci 61.8% 0.6814
Daily Pivot Point S1 0.6784
Daily Pivot Point S2 0.6765
Daily Pivot Point S3 0.6742
Daily Pivot Point R1 0.6826
Daily Pivot Point R2 0.6849
Daily Pivot Point R3 0.6868

 

 

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