NZD/USD: Quiet start in Asia tests rebound from four-month low towards 0.7000

NZD/USD fades bounce off late November 2020 lows.
Fears of Chinese securities’ delisting, North Korea’s missile tests add to the risk-off mood.
Light calendar in Asia pushes traders toward risk catalysts for fresh impulse.

Anil Panchal FXStreet

NZD/USD struggles to rebound from multi-day low, flashed the previous day, while bouncing back towards 0.6965 during the initial Asian session on Thursday. In doing so, the kiwi pair remains pressured near the lowest levels since November 2020 amid fresh challenges to the market sentiment and a light calendar in Asia.

North Korea fires missiles, US prepares for delisting Chinese firms…

Reuters recently came out with the news citing Japan’s Coast Guard to convey that North Korea may have launched a ballistic missile. “Japan coast guard warns ships against coming close to falling objects, calls on them to provide information,” the news said. Elsewhere, the US Securities and Exchange Commission (SEC) adopted measures, on Wednesday, which would kick foreign companies off American stock exchanges if they do not comply with U.S. auditing standards, and require them to disclose any governmental affiliations, per Reuters. This mainly affects Chinese firms who were on the verge of leaving the American bourses during the final days of Donald Trump as the US President.

Other than the aforementioned risks, fears of reflation and fading of New Zealand’s allure, amid recently downbeat data, joins China’s trade war with the US and geopolitical tussle with the West to weigh on risks. Elsewhere, the Fed and US Treasury remain firm to offer more and consistent stimulus fails to convince markets and also weigh on the sentiment.

The risk aversion wave weighs on the US 10-year Treasury yields that dropped for the third day in a row and helped the US dollar index (DXY) to refresh its yearly top. However, the NZD/USD traders need more clues to extend the latest south-run.

As a result, a lack of major data/events keeps troubling the kiwi traders by the press time and hence bears seem tired but not out of the woods.

Read: The February Grab-Bag Preview: Personal Income, Spending, Core PCE Prices and GDP

Technical analysis

A clear break below 0.7000, comprising multiple lows marked during late 2020, directs NZD/USD towards 200-day SMA around 0.6870.

Additional important levels

Overview
Today last price	0.6966
Today Daily Change	-33 pips
Today Daily Change %	-0.47%
Today daily open	0.6999

Trends
Daily SMA20	0.7211
Daily SMA50	0.7207
Daily SMA100	0.7118
Daily SMA200	0.6862

Levels
Previous Daily High	0.717
Previous Daily Low	0.699
Previous Weekly High	0.727
Previous Weekly Low	0.7142
Previous Monthly High	0.7466
Previous Monthly Low	0.7135
Daily Fibonacci 38.2%	0.7059
Daily Fibonacci 61.8%	0.7101
Daily Pivot Point S1	0.6936
Daily Pivot Point S2	0.6873
Daily Pivot Point S3	0.6756
Daily Pivot Point R1	0.7115
Daily Pivot Point R2	0.7232
Daily Pivot Point R3	0.7295

Author

Anil Panchal

FXStreet

Anil Panchal has nearly 15 years of experience in tracking financial markets. With a keen interest in macroeconomics, Anil aptly tracks global news/updates and stays well-informed about the global financial moves and their implications.

EUR/USD rises to 1.1800 neighborhood amid renewed USD selling and trade uncertainties

The EUR/USD pair regains positive traction during the Asian session on Wednesday and jumps to the 1.1800 neighborhood in the last hour, reversing the previous day's modest losses. The intraday move up is sponsored by the emergence of fresh US Dollar, which continues to be weighed down by persistent trade-related uncertainties.

GBP/USD remains stronger above 1.3500 following Trump’s State of the Union

GBP/USD remains in the positive territory for the fourth successive session, trading around 1.3510 during the Asian hours on Wednesday. The pair appreciates as the US Dollar remains subdued following US President Donald Trump’s first State of the Union address of his second administration before a joint session of Congress.

Gold re-attempts $5,200 amid tariffs and geopolitical woes

Gold buyers are back in the game early Wednesday after seeing a correction from monthly highs on Tuesday. The US Dollar slips after Trump’s SOTU fails to impress and as AI-driven worries ease. Dovish Fed bets also weigh. Gold looks north so long as the key 61.8% Fibo resistance at $5,142 holds on the daily chart.

Bitcoin, Ethereum and Ripple post cautious recovery amid downside risks

Bitcoin, Ethereum, and Ripple are posting a cautious recovery on Wednesday following a market correction earlier this week. BTC is approaching a key breakdown level, while ETH and XRP are rebounding from crucial support levels.

The Citrini report: How a debatable AI narrative can shake Wall Street

That AI-related headline alone was enough to rattle investors.US stocks slid sharply on Monday after a widely circulated Citrini Research memo outlined a hypothetical “2028 Global Intelligence Crisis”, warning that rapid AI adoption could push US unemployment into double digits as early as by mid-2028.

XRP pressured by weak ETF flows and declining retail interest

Ripple (XRP) is edging lower, trading above its intraday low of $1.32 at the time of writing on Tuesday. The decline from its weekly opening of $1.39 reflects heightened volatility in the broader cryptocurrency market, accentuated by tariff-triggered uncertainty.