NZD/USD having a difficult time moving off lows

Eren Sengezer FXStreet

Following a recovery attempt back above 0.70 psychological level during the European session, NZD/USD came under renewed selling pressure and refreshed its lowest level since Jan. 11 at 0.6970. The pair has been struggling to correct its losses since and is now at 0.6985.

GDT drop within expectations

According to the latest New Zealand dairy auction, GDT price index dropped by 6.3% compared to the previous result of -3.20%.Markets disregarded this data as NZX Futures trading suggested that the key Whole Milk Powder category could drop by as much as 9%.

US trade balance data showed that the deficit jumped to $48.5 billion in January broadly in-line with expectations. March rate hike probability, which is at 84.1% according to the CME Group FedWatch Tool, continues to drive the markets before Friday's critical NFP numbers. Later in the session, The Economic Optimism Index, released by The Investor's Business Daily (IBD) fell to 55.3 from 56.4, allowing DXY to step back towards 101.70 area.

Technical levels

Technical supports for the pair are aligned at 0.6970 (daily low), 0.69 (psychological level) and finally 0.6860 (Dec. 23 low). On the upside, the first resistance could be found at 0.7000 (psychological level), followed by 0.7045 (Monday high), and 0.7100 (psychological level).

1 Week
1 Month
1 Quarter

1 Week

Avg Forecast 0.6978

25% Bullish
62% Bearish
12% Sideways

Bias Bearish

1 Month

Avg Forecast 0.7055

60% Bullish
27% Bearish
13% Sideways

Bias Bullish

1 Quarter

Avg Forecast 0.6923

19% Bullish
50% Bearish
31% Sideways

Bias Bearish

Author

Eren Sengezer

FXStreet

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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