NZD/USD holds comfortably above 0.7000 mark, lacks follow-through

NZD/USD edged higher for the second straight session amid a subdued USD demand.
Diminishing odds for an earlier Fed rate hike move kept the USD bulls on the defensive.
A softer risk tone held bulls from placing fresh bets around the perceived riskier kiwi.

Haresh Menghani FXStreet

The NZD/USD pair traded with a mild positive bias through the early European session and was last seen trading near the top end of its daily trading range, around the 0.7025-30 region.

The pair built on Friday's recovery move from two-week lows and gained some follow-through traction for the second consecutive session on Monday amid a subdued US dollar demand. That said, a combination of factors held bulls from placing any aggressive bets and kept a lid on any meaningful upside for the NZD/USD pair, at least for the time being.

The headline NFP print showed that the US economy added much higher than anticipated, 850K jobs in June. The big beat, however, was offset by an unexpected rise in the jobless rate, which eased fears about an earlier Fed rate hike. This, in turn, forced investors to lighten their USD long positions and extended some support to the NZD/USD pair.

Meanwhile, the supporting factor, to a larger extent, was negated by a generally softer tone around the equity markets. This acted as a headwind for the perceived riskier kiwi and capped gains for the NZD/USD pair. Investors also seemed reluctant amid relatively thin liquidity conditions on the back of the Independence Day holiday in the US.

Moving ahead, the market focus now shifts to the release of the FOMC meeting minutes on Wednesday. Investors will look for clues about the Fed's near-term monetary policy outlook. This will play a key role in influencing the USD price dynamics in the near term and help determine the next leg of a directional move for the NZD/USD pair.

Technical levels to watch

NZD/USD

Overview
Today last price	0.7025
Today Daily Change	-0.0005
Today Daily Change %	-0.07
Today daily open	0.703

Trends
Daily SMA20	0.707
Daily SMA50	0.7162
Daily SMA100	0.7158
Daily SMA200	0.7058

Levels
Previous Daily High	0.7039
Previous Daily Low	0.6947
Previous Weekly High	0.7087
Previous Weekly Low	0.6947
Previous Monthly High	0.7289
Previous Monthly Low	0.6923
Daily Fibonacci 38.2%	0.7004
Daily Fibonacci 61.8%	0.6982
Daily Pivot Point S1	0.6972
Daily Pivot Point S2	0.6914
Daily Pivot Point S3	0.688
Daily Pivot Point R1	0.7063
Daily Pivot Point R2	0.7097
Daily Pivot Point R3	0.7155

Author

Haresh Menghani

FXStreet

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

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