NZD/USD jumps to 7-week highs as 10-yr treasury yield hits one-year low


  • The dovish Fed and the resulting slide in Treasury yields are boding well for the NZD. 
  • New Zealand GDP data released in early Asia, possibly added to the bid tone around the Kiwi dollar. 
  • The US-China trade tensions may cap gains. 

NZD/USD is currently trading at 0.6930 - a level last seen on Feb. 1 - having cleared the resistance of the trendline connecting the Dec. 4 and Feb. 1 highs earlier today. 

The pair is benefiting from the post-Fed slide in the treasury yields and the broad-based selling in the US dollar. For instance, the 10-year treasury yield fell ten basis points to 2.52 percent, the lowest level since Jan. 18. Meanwhile, the two-year yield also fell ten basis points to 2.37 percent and is currently trading at 2.4 percent. 

New Zealand's GDP data released in early Asia likely strengthened the bid tone around the NZD as well. The economy expanded 0.6 percent quarter-on-quarter in the three months to December, as analysts had expected, and double the 0.3 percent pace of the third quarter, according to Statistics New Zealand. 

Looking forward, the pair may climb the immediate resistance at 0.6842 (Feb. 1), as the treasury yields look set to extend losses. A sustained break, however, may remain elusive if equities turn red in response to reports stating that US tariffs on Chinese imports could remain in place for a substantial period of time. So far, however, there are no signs of stress in the equities with the futures on the S&P 500 reporting a 0.28 percent rise.

Technical Levels

NZD/USD

Overview
Today last price 0.6929
Today Daily Change 46 pips
Today Daily Change % 0.67
Today daily open 0.6883
 
Trends
Daily SMA20 0.6832
Daily SMA50 0.6821
Daily SMA100 0.6803
Daily SMA200 0.6738
 
Levels
Previous Daily High 0.6919
Previous Daily Low 0.6827
Previous Weekly High 0.6874
Previous Weekly Low 0.679
Previous Monthly High 0.6943
Previous Monthly Low 0.6719
Daily Fibonacci 38.2% 0.6884
Daily Fibonacci 61.8% 0.6862
Daily Pivot Point S1 0.6834
Daily Pivot Point S2 0.6784
Daily Pivot Point S3 0.6742
Daily Pivot Point R1 0.6925
Daily Pivot Point R2 0.6968
Daily Pivot Point R3 0.7017


 

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