NZD/USD inches back closer to 0.6725-30 supply zone


  • The USD fails to capitalize on the overnight upswing amid sliding US bond yields.
  • Tempered expectations for aggressive policy easing by the Fed might cap gains.
  • Wednesday’s US housing market data eye for some short-term trading impetus.

The NZD/USD pair regained positive traction on Wednesday and recovered the previous session's retracement slide from three-month tops.

Resurgent US Dollar demand, which got an additional boost following the release of upbeat June US retail sales figures, prompted some long-unwinding trade on Tuesday and turned out to be one of the key factors behind the pair's intraday pullback. 

The downtick, however, turned out to be short-lived in the wake of absent follow-through USD buying interest. Renewed weakness in the US Treasury bond yields kept the USD bulls on the defensive and assisted the pair to catch some fresh bids on Wednesday.

The up-move - marking the fifth day of a positive move in the previous six, has now lifted the pair back closer to the 0.6725-30 supply zone, which if cleared will set the stage for a further near-term appreciating move, though tempered expectations for an aggressive policy easing by the Fed might cap gains.

Moving ahead, Wednesday's US housing market data - building permits and housing starts, due for release later during the early North-American session, will now be looked upon for a fresh impetus and in order to grab some short-term trading opportunities.

Technical levels to watch

NZD/USD

Overview
Today last price 0.672
Today Daily Change 0.0019
Today Daily Change % 0.28
Today daily open 0.6701
 
Trends
Daily SMA20 0.6654
Daily SMA50 0.6597
Daily SMA100 0.6678
Daily SMA200 0.6717
Levels
Previous Daily High 0.6739
Previous Daily Low 0.6694
Previous Weekly High 0.6699
Previous Weekly Low 0.6567
Previous Monthly High 0.6722
Previous Monthly Low 0.6487
Daily Fibonacci 38.2% 0.6711
Daily Fibonacci 61.8% 0.6722
Daily Pivot Point S1 0.6684
Daily Pivot Point S2 0.6667
Daily Pivot Point S3 0.6639
Daily Pivot Point R1 0.6728
Daily Pivot Point R2 0.6756
Daily Pivot Point R3 0.6773

 

 

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

Latest Forex News

Editors’ Picks

EUR/USD drops below 1.11 amid upbeat US data, trade concerns

EUR/USD is trading below 1.11 after robust US housing figures and solid consumer sentiment figures were published. Earlier, the common currency suffered from the concerns of new US tariffs on the EU.

EUR/USD News

GBP/USD down 100 pips after UK retail sales badly disappoint, amid USD strength

GBP/USD has plunged below 1.3050 after UK retail sales badly disappointed with a fall of 0.6% in December, on top of downward revisions. Odds of a BOE cut have risen.

GBP/USD News

Crypto market hyperspace mode On

The secondary actors of the crypto-sphere awaken and rally hard. Leading coins battle with greater resistance at the gates of a full bullish market. The only risk is an over-shoot, but that sentiment remains neutral.

Read more

Gold looks to close week flat below $1560

The XAU/USD pair climbed to a fresh daily high of $1560 in the early trading hours of the American session but struggled to preserve its momentum.

Gold News

USD/JPY: Losing bullish momentum but retaining gains

Chinese encouraging data kept markets in risk-on mode at the beginning of the day. The US January Michigan Consumer Sentiment Index is seen at 99.3, matching December figure. USD/JPY holding at the upper end of its weekly range could correct lower.

USD/JPY News

Forex MAJORS

Cryptocurrencies

Signatures