NZD/USD rebounds modestly from multi-week lows, stays below 0.7050

NZD/USD is falling for the second straight trading day.
USD's market valuation drives NZD/USD's movements on Monday.
Slumping US stock futures suggest safe-haven flows will dominate the American session.

Eren Sengezer FXStreet

After advancing to fresh a fresh multi-year high of 0.7172 last Thursday, the NZD/USD pair made a technical correction and close in the negative territory on Friday. With the market mood turning sour on Monday, the pair came under strong bearish pressure and slumped to its lowest level since November 27 at 0.7003. Ahead of the American session, however, NZD/USD started to consolidate its daily losses and was last seen losing 1.25% on the day at 0.7035.

COVID-19 headlines weigh on sentiment

Concerning reports from the UK suggesting that the new string of the coronavirus is 70% more transmissible caused investors to turn cautious. The risk-averse market environment triggered a deep selloff in major global equity indexes and allowed USD to outperform its rivals.

The US Dollar Index, which touched a weekly high of 91.02 earlier in the day, is currently gaining 0.6% at 90.66. Meanwhile, S&P 500 Futures and Dow Jones Futures are down 1.7% and 1.5%, respectively, suggesting that safe-haven flows will continue to dominate the financial markets in the second half of the day.

Earlier in the day, the data from New Zealand revealed that Credit Card Spending in November declined by 5.6% on a yearly basis but this reading was largely ignored by the market participants. The only data featured in the US economic docket on Monday will be the Chicago Fed National Activity Index.

Technical levels to watch for

NZD/USD

Overview
Today last price	0.7033
Today Daily Change	-0.0102
Today Daily Change %	-1.43
Today daily open	0.7135

Trends
Daily SMA20	0.7052
Daily SMA50	0.6861
Daily SMA100	0.6746
Daily SMA200	0.6493

Levels
Previous Daily High	0.7156
Previous Daily Low	0.711
Previous Weekly High	0.7172
Previous Weekly Low	0.7054
Previous Monthly High	0.7052
Previous Monthly Low	0.6589
Daily Fibonacci 38.2%	0.7128
Daily Fibonacci 61.8%	0.7139
Daily Pivot Point S1	0.7111
Daily Pivot Point S2	0.7087
Daily Pivot Point S3	0.7065
Daily Pivot Point R1	0.7158
Daily Pivot Point R2	0.718
Daily Pivot Point R3	0.7204

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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