NZD/USD Price Analysis: Corrects from 0.6370 as US yields recover

NZD/USD falls sharply to near 0.6330 as US Treasury yields attempted recovery.
The USD Index has printed a fresh five-month low near 100.60.
NZD/USD aims for stabilization after a Falling channel breakout.

Sagar Dua FXStreet

The NZD/USD pair has fallen to near 0.6330 amid a surprise recovery in the US Treasury yields. The 10-year US Treasury yields have rebounded to near 3.82%. The broader appeal for the Kiwi asset remains upbeat as investors lean towards expectations of early rate cuts by the Federal Reserve (Fed).

S&P500 futures have added some gains in the London session, portraying an improvement in the risk-appetite of the market participants. The US Dollar Index has refreshed five-month low near 100.60 as slowing price pressures in the United States economy may allow Fed policymakers to discuss about unwinding interest rates earlier than previously anticipated.

The New Zealand Dollar will be in action after the release of the Caixin Manufacturing PMI data for December, which will release on Tuesday. The economic data is expected to remain above the 50.0 threshold. Being a proxy to Chinese economy, the New Zealand Dollar will be benefitted by upbeat factory data.

NZD/USD has been sustaining at higher levels after a breakout of the Falling Channel chart pattern formed on a daily scale. Upward-sloping 20-period Exponential Moving Average (EMA) at 0.6230 continues to provide support to the New Zealand Dollar bulls.

The Relative Strength Index (RSI) (14) oscillates in the bullish range of 60.00-80.00, which indicates that upside momentum is intact.

Gradual correction towards the round-level support of 0.6300 would emerge as a buying opportunity for the market participants, which will drive asset towards intraday high at 0.6370, followed by December 26 high near 0.6410.

On the flip side, a downside move below December 25 low at 0.6246 would expose the asset to November 29 high at 0.6208 and December 14 low at 0.6168.

NZD/USD daily chart

NZD/USD

Overview
Today last price	0.6336
Today Daily Change	-0.0004
Today Daily Change %	-0.06
Today daily open	0.634

Trends
Daily SMA20	0.6213
Daily SMA50	0.6051
Daily SMA100	0.5995
Daily SMA200	0.6092

Levels
Previous Daily High	0.635
Previous Daily Low	0.6306
Previous Weekly High	0.6329
Previous Weekly Low	0.6186
Previous Monthly High	0.6208
Previous Monthly Low	0.5788
Daily Fibonacci 38.2%	0.6333
Daily Fibonacci 61.8%	0.6323
Daily Pivot Point S1	0.6314
Daily Pivot Point S2	0.6288
Daily Pivot Point S3	0.627
Daily Pivot Point R1	0.6358
Daily Pivot Point R2	0.6376
Daily Pivot Point R3	0.6402

Author

Sagar Dua

FXStreet

Sagar Dua is associated with the financial markets from his college days. Along with pursuing post-graduation in Commerce in 2014, he started his markets training with chart analysis.

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