NZD/USD rebounds toward 0.7200 after hitting two-week lows below 0.7150
- NZD/USD rebounds from weekly lows, holds under 0.7200.
- Dollar moves off lows, amid an improvement in risk sentiment.
The NZD/USD is falling for the third consecutive day as it continues to correct lower from multi-year highs. The pair bottomed dafter the beginning of the American session at 0.7145 matching the 20-day moving average.
The kiwi moved off lows as Wall Street indexes trimmed losses and after the dollar lost momentum across the board. Still, the greenback is among the top performers on Monday supported by higher US yields. The 10-year reached above 1.08%, the highest level since March.
In the US, attention continues to be in politics. Democratic lawmakers continue to pressure Vice President Pence to remove powers from President Trump under a constitutional amendment. Also, they look for impeachment.
From a technical perspective, NZD/USD continues to correct lower. The rebound from 0.7145 to 0.7185 alleviated the bearish pressure in the short-term. A consolidation below 0.7160 would open the door to more weakness. On the upside, the kiwi needs to recover the 0.7250 zone, to be able to look again to the 0.7300 area.
Technical levels
Author
Matías Salord
FXStreet
Matías started in financial markets in 2008, after graduating in Economics. He was trained in chart analysis and then became an educator. He also studied Journalism. He started writing analyses for specialized websites before joining FXStreet.
