NZD/USD rebounds above 0.6960 amid broad USD weakness

NZD/USD is pushing higher following a four-day losing streak.
US Dollar Index retreats toward 92.00 after last week's rally.
Wall Street's main indexes look to open higher on Monday.

Eren Sengezer FXStreet

The NZD/USD pair lost nearly 200 pips last week and closed the third straight week in the negative territory. In the absence of significant fundamental drivers on Monday, the pair seems to be staging a correction and was last seen gaining 0.45% on the day at 0.6965.

DXY rally loses steam on Monday

The unabated USD strength following the hawkish tilt in the FOMC's monetary policy outlook weighed heavily on NZD/USD in the second half of the previous week. The US Dollar Index (DXY), which tracks the USD's performance against a basket of six major currencies, rose 2% and registered its largest weekly percentage gain since the beginning of the coronavirus outbreak.

There won't be any high-tier macroeconomic data releases from the US in the remainder of the day and the pair seems poised to extend its rebound.

Meanwhile, S&P Futures and Nasdaq Futures both gain around 0.5% ahead of Wall Street's opening bell, suggesting that the risk-positive market environment could make it difficult for the USD to regather its strength during the American session.

On Tuesday, the Westpac Consumer Survey for the second quarter from New Zealand will be looked upon for fresh impetus during the Asian trading hours.

Technical levels to watch for

NZD/USD

Overview
Today last price	0.6966
Today Daily Change	0.0032
Today Daily Change %	0.46
Today daily open	0.6934

Trends
Daily SMA20	0.718
Daily SMA50	0.7188
Daily SMA100	0.7176
Daily SMA200	0.704

Levels
Previous Daily High	0.7019
Previous Daily Low	0.6923
Previous Weekly High	0.7161
Previous Weekly Low	0.6923
Previous Monthly High	0.7317
Previous Monthly Low	0.7115
Daily Fibonacci 38.2%	0.696
Daily Fibonacci 61.8%	0.6982
Daily Pivot Point S1	0.6898
Daily Pivot Point S2	0.6863
Daily Pivot Point S3	0.6802
Daily Pivot Point R1	0.6994
Daily Pivot Point R2	0.7055
Daily Pivot Point R3	0.709

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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