NZD/USD rebounds above 0.7200 supported by risk flows

NZD/USD turned north after edging lower in Asian session.
US Dollar Index posts small daily gains above 90.40.
Upbeat market mood is helping NZD find demand on Tuesday.

Eren Sengezer FXStreet

The poor performance of major equity indexes in Asia helped the greenback continue to gather strength against its rivals at the start of the day on Tuesday. After dropping to a daily low of 0.7167, however, the NZD/USD pair staged a rebound on the back of improving sentiment and was last seen gaining 0.1% on the day at 0.7202.

DXY continues to react to shifts in risk perception

Earlier in the day, the data from New Zealand showed that the Business NZ Performance of Services Index rose to 49.2 in December from 46.7 in November but this reading failed to help the kiwi find demand.

Reflecting the risk-positive market environment during the European trading hours, Germany's DAX 30 and the Euro Stoxx 50 indexes both rise more than 1%. The US Dollar Index (DXY), which advanced to a fresh six-day high of 90.61, is currently clinging to small daily gains at 90.45.

Later in the session, the Conference Board's Consumer Confidence Index and the Housing Price Index data will be featured in the US economic docket.

Meanwhile, Wall Street's main indexes look to start the day in the negative territory with the S&P 500 Futures losing 0.25%. Investors seem to have adopted a cautious stance amid renewed concerns over a delay to the passage of the $1.9 trillion US stimulus bill. If US stocks perform poorly on Tuesday, the greenback could gather strength and make it difficult for NZD/USD to push higher in the second half of the day.

Technical levels to watch for

NZD/USD

Overview
Today last price	0.7203
Today Daily Change	0.0007
Today Daily Change %	0.10
Today daily open	0.7196

Trends
Daily SMA20	0.7168
Daily SMA50	0.7093
Daily SMA100	0.6883
Daily SMA200	0.6651

Levels
Previous Daily High	0.7217
Previous Daily Low	0.7171
Previous Weekly High	0.7226
Previous Weekly Low	0.7096
Previous Monthly High	0.7241
Previous Monthly Low	0.7002
Daily Fibonacci 38.2%	0.7199
Daily Fibonacci 61.8%	0.7188
Daily Pivot Point S1	0.7172
Daily Pivot Point S2	0.7148
Daily Pivot Point S3	0.7126
Daily Pivot Point R1	0.7219
Daily Pivot Point R2	0.7241
Daily Pivot Point R3	0.7265

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.

EUR/USD holds losses near 1.1850 as US, China holidays keep trade muted

EUR/USD opens the week on a softer note, trading near 1.1860 during the Asian session on Monday. Activity is likely to remain muted, with United States markets closed for the Presidents’ Day holiday, while Mainland China is also shut for the week-long Lunar New Year break.

GBP/USD flat lines as traders await key UK macro data and FOMC minutes

The GBP/USD pair kicks off a new week on a subdued note and oscillates in a narrow range, just below mid-1.3600s, during the Asian session. Moreover, the mixed fundamental backdrop warrants some caution for aggressive traders as the market focus now shifts to this week's important releases from the UK and the US.

Gold remains below $5,050 despite Fed rate cut bets, uncertain geopolitical tensions

Gold edges lower after registering over 2% gains in the previous session, trading around $5,030 per troy ounce during the Asian hours on Monday. However, the non-interest-bearing Gold could further gain ground following softer January Consumer Price Index figures, which reinforced expectations that the Federal Reserve could cut rates later this year.

Week ahead: Data blitz, Fed Minutes and RBNZ decision in the spotlight

The US jobs report for January, which was delayed slightly, didn’t do the dovish Fed bets any favours, as expectations of a soft print did not materialize, confounding the raft of weak job indicators seen in the prior week.

Global inflation watch: Signs of cooling services inflation

Realized inflation landed close to expectations in January, as negative base effects weighed on the annual rates. Remaining sticky inflation is largely explained by services, while tariff-driven goods inflation remains limited even in the US.

Ripple Price Forecast: XRP potential bottom could be in sight

Ripple edges up above the intraday low of $1.35 at the time of writing on Friday amid mixed price actions across the crypto market. The remittance token failed to hold support at $1.40 the previous day, reflecting risk-off sentiment amid a decline in retail and institutional sentiment.