NZD/USD jumps to fresh one-month tops, around 0.7125 region


  • NZD/USD gained strong follow-through traction for the fifth consecutive session on Tuesday.
  • Retreating US bond yields prompted fresh USD selling and provided a goodish lift to the pair.
  • A softer risk tone did little to hinder the momentum beyond the 0.7100 confluence barrier.

The NZD/USD pair surged past the 0.7100 round figure during the Asian session and shot to one-month tops, around the 0.7125 region in the last hour.

The pair built on its recent strong rally from the vicinity of the 0.6900 mark and gained strong follow-through traction for the fifth consecutive session on Tuesday. Following the previous day's two-way price moves, the US dollar met with some fresh supply amid a further pullback in the US Treasury bond yields. This, in turn, was seen as a key factor that provided a goodish lift to the NZD/USD pair.

Bulls seemed rather unaffected by a generally softer tone around the equity markets, which tends to undermine the perceived riskier kiwi. Fears that a faster-than-expected rise in inflation could derail the global economic recovery weighed on investors' sentiment. The concerns were further fueled by Monday's disappointing Chinese data, showing that the economic growth decelerated sharply from 7.9% to 4.9% during the third quarter.

Nevertheless, the NZD/USD pair finally broke through a confluence barrier, comprising of the very important 200-day SMA and a downward sloping trend-line extending from YTD tops touched in February. This could be seen as a fresh trigger for bullish traders and might have already set the stage for a further near-term appreciating move.

That said, prospects for an early policy tightening by the Fed might help limit any deeper USD losses and cap the upside for the NZD/USD pair. Investors seem convinced that the Fed will begin tapering its bond purchases in 2021 and have been pricing in the possibility of a rate hike in 2022 to counter growing inflation risks.

This, in turn, warrants some caution for aggressive bullish traders amid absent relevant market-moving economic releases on Tuesday. Traders now look forward to a scheduled speech by Fed Governor Michelle Bowman. This, along with the US bond yields and the broader market risk sentiment, might influence the USD and provide some impetus to the NZD/USD pair.

Technical levels to watch

NZD/USD

Overview
Today last price 0.7117
Today Daily Change 0.0031
Today Daily Change % 0.44
Today daily open 0.7086
 
Trends
Daily SMA20 0.6977
Daily SMA50 0.7006
Daily SMA100 0.7023
Daily SMA200 0.7102
 
Levels
Previous Daily High 0.7105
Previous Daily Low 0.7049
Previous Weekly High 0.7078
Previous Weekly Low 0.6912
Previous Monthly High 0.7171
Previous Monthly Low 0.6859
Daily Fibonacci 38.2% 0.7084
Daily Fibonacci 61.8% 0.707
Daily Pivot Point S1 0.7055
Daily Pivot Point S2 0.7024
Daily Pivot Point S3 0.6999
Daily Pivot Point R1 0.7111
Daily Pivot Point R2 0.7136
Daily Pivot Point R3 0.7167

 

 

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. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Feed news

Latest Forex News


Latest Forex News

Editors’ Picks

EUR/USD climbs above 1.1250 as investors eye coronavirus headlines

EUR/USD preserved its recovery momentum early Friday and rose above 1.1250 during the European trading hours. Markets are doubting the Fed's policy tightening prospects as the new coronavirus variant revives concerns over the economic recovery losing steam.

EUR/USD News

GBP/USD rebounds toward mid-1.3300s on broad dollar weakness

GBP/USD reversed its direction after dipping below 1.3300 earlier in the day and started to push higher toward 1.3350. The greenback is facing heavy selling pressure amid the sharp decline witnessed in the 10-year US Treasury bond yield.

GBP/USD News

Gold clings to strong gains above $1,800 as US T-bond yields plunge Premium

Gold staged a decisive rebound on Friday and reclaimed $1,800. The intense flight to safety is causing US Treasury bond yields to fall sharply and fueling XAU/USD's rally. Investors await news on vaccines' effectiveness against the new COVID variant.

Gold News

Cardano could tank to $1 if ADA fails to defend crucial support

Cardano price is currently hovering below a freshly shattered 6-hour demand zone, ranging from $1.68 to $1.79. This resulting crash could extend to the immediate and critical foothold at $1.40. 

Read more

Black Friday 2021 Discounts!

Do you want to take your trading skills to the next level? Now you have a chance of leaping forward at attractive introductory rates. For Black Friday, FXStreet is offering discounts of up to 50% on its upgraded Premium plans. 

Subscribe now!

Forex MAJORS

Cryptocurrencies

Signatures