NZD/USD pressured in Asia amid bullish DXY, Yuan weakness
The NZD/USD pair attempts a tepid bounce, although remains under pressure in the Asian trades, as the spot faces double whammy amid holiday-thinned trading.
NZD/USD hovers around 10-DMA
Currently, the NZD/USD pair trades -0.15% lower at 0.7149, recovering slightly from session lows struck earlier at 0.7139. The NZD/USD pair keeps the red as the US dollar jumps to fresh eight-week peaks versus its major peers.
While the Kiwi also remains weighed down by ongoing weakness in the Yuan, after the Chinese central bank set PBOC fix weaker, with the Yuan hitting fresh six-year troughs post-China fix.
Looking ahead, amid a lack of relevant economic releases due on the cards today, the major will remain at the mercy of the USD dynamics, in wake of speeches from Fed officials Bullard and Dudley.
NZD/USD Levels to consider
To the upside, the next resistance is located at 0.7179 (5-DMA), above which it could extend gains to 0.7210 (100-DMA) and from there to 0.7242 (50-DMA). To the downside immediate support might be located at 0.7100 (round figure) and from there to at 0.7080 (key support), below which 0.7036/32 (200-DMA/Oct 13 low) would be tested.
Author
Dhwani Mehta
FXStreet
Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.
