NZD/USD recovers back above 0.7050, having found solid support at 0.7000

NZD/USD found decent support above 0.7000 and has managed to recover to trade flat on the day above 0.7050.
The pair did not react to news of a quarantine-free travel corridor between Australia and New Zealand from 19 April.

Joel Frank Independent Analyst

NZD/USD bulls will be encouraged by the day’s price action; the pair dropped to lows of just above the 0.7000 level during the European morning but has since been able to advance back above 0.7050. Short-term bulls may see the support the pair got at the 0.7000 level as a bullish signal and are likely to take aim at Monday’s 0.7070 highs, ahead of a move towards the NZD/USD’s 21-day moving average at 0.7090. On the session, the pair trades flat, with the recent recovery from just above 0.7000 only managing to take the pair back in line with Tuesday Asia Pacific session levels close to 0.7060.

Driving the day

FX markets have been mixed on Tuesday, with the USD experiencing mixed fortunes versus its major G10 counterparts; CHF, EUR, JPY and to a lesser extent, AUD have been able to make solid gains versus the buck, while CAD and GBP have lost ground. The kiwi has been caught in the middle, hence why it trades flat on the session.

In terms of fresh news out of New Zealand; PM Jacinda Ardern announced that a new quarantine-free travel bubble with Australia will begin on 19 April, something which she said will provide a welcome boost to the country’s economic recovery. Passengers will not be allowed to travel if they are experiencing cold or flu symptoms, however. The news has failed to give NZD a meaningful lift. Elsewhere, the results of the latest GlobalDairyTrade auction were released on Tuesday; Diary prices rose 0.3% since the last auction two weeks earlier; not a reading to get especially excited about, but NZD traders will be relieved to see Dairy prices continuing to consolidating close to recent highs, having surged 36% since mid-November 2020 (during which time the arrival of vaccines has boosted global economic recovery expectations and sent commodity prices more broadly shooting higher).

Looking ahead, the main event of the week in New Zealand will be the release of the latest ANZ Business Confidence and Activity Outlook indices for the month of April on Thursday, a timely update on the state of the kiwi economy. Meanwhile, the focus stateside will be on the Fed, with Chairman Jerome Powell slated to speak on Thursday following the release of the FOMC minutes of the March meeting on Wednesday. March Producer Price Inflation, released on Friday, will also be of note to USD traders, with recent data pointing to the ongoing presence of supply shortages and supply chain disruptions in the manufacturing sector that may introduce some upside risk to producer price inflation.

NZD/Usd

Overview
Today last price	0.7053
Today Daily Change	-0.0002
Today Daily Change %	-0.03
Today daily open	0.7055

Trends
Daily SMA20	0.7094
Daily SMA50	0.7176
Daily SMA100	0.7135
Daily SMA200	0.6887

Levels
Previous Daily High	0.707
Previous Daily Low	0.7015
Previous Weekly High	0.7055
Previous Weekly Low	0.6945
Previous Monthly High	0.7308
Previous Monthly Low	0.6943
Daily Fibonacci 38.2%	0.7049
Daily Fibonacci 61.8%	0.7036
Daily Pivot Point S1	0.7023
Daily Pivot Point S2	0.6992
Daily Pivot Point S3	0.6968
Daily Pivot Point R1	0.7078
Daily Pivot Point R2	0.7102
Daily Pivot Point R3	0.7133

Author

Joel Frank

Independent Analyst

Joel Frank is an economics graduate from the University of Birmingham and has worked as a full-time financial market analyst since 2018, specialising in the coverage of how developments in the global economy impact financial asset

EUR/USD trims gains, hovers around 1.1900 post-US data

EUR/USD trades slightly on the back foot around the 1.1900 region in a context dominated by the resurgence of some buying interest around the US Dollar on turnaround Tuesday. Looking at the US docket, Retail Sales disappointed expectations in December, while the ADP 4-Week Average came in at 6.5K.

GBP/USD comes under pressure near 1.3680

The better tone in the Greenback hurts the risk-linked complex on Tuesday, prompting GBP/USD to set aside two consecutive days of gains and trade slightly on the defensive below the 1.3700 mark. Investors, in the meantime, keep their attention on key UK data due later in the week.

Gold loses some traction, still above $5,000

Gold faces some selling pressure on Tuesday, surrendering part of its recent two-day advance although managing to keep the trade above the $5,000 mark per troy ounce. The daily pullback in the precious metal comes in response to the modest rebound in the US Dollar, while declining US Treasury yields across the curve seem to limit the downside.

XRP holds $1.40 amid ETF inflows and stable derivatives market

Ripple trades under pressure, with immediate support at $1.40 holding at the time of writing on Tuesday. A recovery attempt from last week’s sell-off to $1.12 stalled at $1.54 on Friday, leading to limited price action between the current support and the resistance.

Dollar drops and stocks rally: The week of reckoning for US economic data

Following a sizeable move lower in US technology Stocks last week, we have witnessed a meaningful recovery unfold. The USD Index is in a concerning position; the monthly price continues to hold the south channel support.

Bitcoin Cash trades lower, risks dead-cat bounce amid bearish signals

Bitcoin Cash (BCH) trades in the red below $522 at the time of writing on Tuesday, after multiple rejections at key resistance. BCH’s derivatives and on-chain indicators point to growing bearish sentiment and raise the risk of a dead-cat bounce toward lower support levels.