- China’s anti-Covid protest-inspired risk-off profile has weakened the New Zealand Dollar.
- The US yields have dropped amid anxiety ahead of Fed Powell’s speech.
- A momentum loss in the kiwi asset has been followed by a breakdown of 100-EMA.
The NZD/USD pair has dropped to a short-lived cushion around 0.6200 in the Tokyo session. China’s anti-Covid lockdown protests-inspired volatility has spooked the sentiment of market participants. In the currency domain, commodity-linked currencies have sensed immense selling pressure being a trading partner of China.
Meanwhile, the US Dollar Index (DXY) has tested a two-day high at 106.40 and is expected to sustain above the same. S&P500 futures have extended its losses further, portraying a risk-aversion theme. The 10-year US Treasury yields have tumbled below 3.65% amid anxiety ahead of a speech from Federal Reserve (Fed) chair Jerome Powell, which is due on Wednesday.
On an hourly scale, the Kiwi asset has dropped after facing a loss in the upside momentum. The major dropped to near the round-level support of 0.6200, which was a resistance earlier. The upward-sloping trendline from November 3 low at 0.5741 will continue to act as major support for the counter.
The Kiwi asset has dropped below the 100-period Exponential Moving Average (EMA) at 0.6215 while the 200-EMA at 0.6170 has not been challenged yet.
Meanwhile, the Relative Strength Index (RSI) (14) has slipped into the bearish range of 20.00-40.00, which indicates more weakness ahead.
Going forward, a drop below November 23 low at 0.6130 will drag the kiwi asset towards the horizontal support placed from November 13 low at 0.6074 and the psychological support at 0.6000.
On the flip side, a break above Friday’s high at 0.6278 will drive the major towards August 1 high at 0.6353, followed by the round-level resistance at 0.6400.
NZD/USD hourly chart
-638052051594392663.png)
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.
Recommended content
Editors’ Picks
USD/JPY jumps above 156.00 on BoJ's steady policy
USD/JPY has come under intense buying pressure, surging past 156.00 after the Bank of Japan kept the key rate unchanged but tweaked its policy statement. The BoJ maintained its fiscal year 2024 and 2025 core inflation forecasts, disappointing the Japanese Yen buyers.
AUD/USD consolidates gains above 0.6500 after Australian PPI data
AUD/USD is consolidating gains above 0.6500 in Asian trading on Friday. The pair capitalizes on an annual increase in Australian PPI data. Meanwhile, a softer US Dollar and improving market mood also underpin the Aussie ahead of the US PCE inflation data.
Gold price flatlines as traders look to US PCE Price Index for some meaningful impetus
Gold price lacks any firm intraday direction and is influenced by a combination of diverging forces. The weaker US GDP print and a rise in US inflation benefit the metal amid subdued USD demand. Hawkish Fed expectations cap the upside as traders await the release of the US PCE Price Index.
Stripe looks to bring back crypto payments as stablecoin market cap hits all-time high
Stripe announced on Thursday that it would add support for USDC stablecoin, as the stablecoin market exploded in March, according to reports by Cryptocompare.
US economy: Slower growth with stronger inflation
The US Dollar strengthened, and stocks fell after statistical data from the US. The focus was on the preliminary estimate of GDP for the first quarter. Annualised quarterly growth came in at just 1.6%, down from the 2.5% and 3.4% previously forecast.