NZD/USD off multi-week low, keeps the red below mid-0.6900s

  • NZD/USD witnessed heavy selling for the third successive day on Tuesday.
  • Weaker NZ Retail Sales data exerted pressure amid sustained USD buying.
  • Acceptance below the 0.7000 mark further aggravated the bearish pressure.

The NZD/USD pair remained depressed heading into the European session, albeit has managed to rebound a few pips from the lowest level since October 13. The pair was last seen trading with only modest intraday losses, just below mid-0.6900s.

The pair struggled to capitalize on its intraday positive move, instead met with a fresh supply near the 0.6975 region and turned lower for the third successive day on Tuesday. The slump in New Zealand Retail Sales, by 8.1% in the September quarter, was not as severe as economists had expected, though was enough to weigh on the domestic currency. This, along with a strong bullish sentiment surrounding the US dollar, exerted heavy downward pressure on the NZD/USD pair.

In fact, the key USD Index shot to the highest level since July 2020 during the early part of the trading action and remained well supported by speculations for an early policy tightening by the Fed. US President nominated Jerome Powell to serve as the Fed chairman for a second term. The fact that investors considered the other leading candidate, Lael Brainard, to be the more dovish of the two, the announcement reinforced bets for higher US interest rates.

The Fed funds futures indicate the possibility for an eventual Fed rate hike move by July 2022 and a high likelihood of another raise by November. This, in turn, triggered a sharp overnight rally in the US Treasury bond yields, which continued acting as a tailwind for the buck. Apart from this, concerns over the rising number of COVID-19 cases in Europe and the reimposition of restrictive measures further benefitted the greenback's safe-haven status.

Apart from this, technical selling on a sustained break and acceptance below the 0.7000 psychological mark further contributed to the NZD/USD pair's ongoing decline. Moreover, the markets already seem to have fully priced in another rate hike by the Reserve Bank of New Zealand (RBNZ) at the upcoming meeting on Wednesday. This, in turn, favours bearish traders and supports prospects for an extension of the downward trajectory.

Heading into Wednesday's key central bank event risk, traders might take cues from the release of the flash US PMI prints for November later during the early North American session. The data, along with the US bond yields and the broader market risk sentiment, will influence the USD price dynamics and provide some impetus to the NZD/USD pair.

Technical levels to watch


Today last price 0.6928
Today Daily Change -0.0024
Today Daily Change % -0.35
Today daily open 0.6952
Daily SMA20 0.7091
Daily SMA50 0.7051
Daily SMA100 0.7026
Daily SMA200 0.7091
Previous Daily High 0.7014
Previous Daily Low 0.695
Previous Weekly High 0.7082
Previous Weekly Low 0.698
Previous Monthly High 0.7219
Previous Monthly Low 0.6876
Daily Fibonacci 38.2% 0.6975
Daily Fibonacci 61.8% 0.699
Daily Pivot Point S1 0.693
Daily Pivot Point S2 0.6908
Daily Pivot Point S3 0.6866
Daily Pivot Point R1 0.6995
Daily Pivot Point R2 0.7037
Daily Pivot Point R3 0.7059



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 retains gains and trades around 1.1350

EUR/USD stays afloat in the positive territory near 1.1350 as the greenback struggles to gather strength on retreating US T-bond yields. Focus remains on mounting inflationary pressures and upcoming central banks’ announcements.


GBP/USD holds its ground in the positive territory above 1.3600

GBP/USD holds above 1.3600 in the second half of the day on Wednesday supported by the modest selling pressure surrounding the dollar. The benchmark 10-year US Treasury bond yield stays in the red in the early American session and the US Dollar Index edges lower toward 95.50.


Gold: Bullish breakout exposes November monthly high at 1,877.15

Spot gold trades above $1,840 a troy ounce, at levels last seen in November 2021. The bright metal soared through the American session amid persistent concerns about inflation and volatile US government bond yields. 

Gold News

Shiba Inu price has a good chance to surge to $0.000040

A brief technical and on-chain analysis on Shiba Inu price. FXStreet's analysts evaluate why SHIB could advance further. 

Read more

Yields everywhere are rising too far, too fast: Could we expect them to settle down?

Today we get housing starts and permits, but expectations are running low because of Omicron and bad weather. It’s not exactly an inspiring bit of data, anyway. In fact, the juicy data is from Canada, CPI today and retail sales on Friday. There is still chatter about a BoC hike next week. 

Read more