NZD/USD pares early gains, trades around 0.6430

New Zealand and China reportedly agreed to update free trade agreement.
US Dollar Index is posting modest gains on Monday.
US and China are moving closer to finalizing phase one of the trade deal.

Eren Sengezer FXStreet

The NZD/USD pair started the new week on a strong footing and advanced to its highest level since August 14th at 0.6466 boosted by reports revealing that New Zealand and China have reached an agreement to update the free trade agreement. Citing, Radio New Zealand, Reuters reported that the new agreement includes rules to make exporting to China cheaper and easier for New Zealand.

Additionally, United States Commerce Secretary Wilbur Ross on Monday noted that they were "very far along" in trade talks with China and US envoy Robert O’Brien added that sides were close to finalizing the phase one of the trade deal.

USD rebounds after last week's fall

However, the broad-based USD strength on Monday made it difficult for the pair to preserve its bullish momentum. As of writing, the pair was virtually unchanged on the day at 0.6430. Amid a lack of fresh fundamental drivers, the US Dollar Index is making a technical correction of last week's 0.75% drop. At the moment, the index is up 0.22% on the day at 97.33

In the second half of the day, the ISM NY Business Conditions Index and Factory Orders data from the US will be featured in the economic calendar.

Technical levels to watch for

NZD/USD

Overview
Today last price	0.6427
Today Daily Change	0.0000
Today Daily Change %	0.00
Today daily open	0.6427

Trends
Daily SMA20	0.6352
Daily SMA50	0.6341
Daily SMA100	0.6465
Daily SMA200	0.6593

Levels
Previous Daily High	0.6458
Previous Daily Low	0.6406
Previous Weekly High	0.6458
Previous Weekly Low	0.6333
Previous Monthly High	0.6437
Previous Monthly Low	0.6204
Daily Fibonacci 38.2%	0.6438
Daily Fibonacci 61.8%	0.6426
Daily Pivot Point S1	0.6403
Daily Pivot Point S2	0.6379
Daily Pivot Point S3	0.6351
Daily Pivot Point R1	0.6454
Daily Pivot Point R2	0.6482
Daily Pivot Point R3	0.6506

Author

Eren Sengezer

FXStreet

As an economist at heart, Eren Sengezer specializes in the assessment of the short-term and long-term impacts of macroeconomic data, central bank policies and political developments on financial assets.

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