NZD/USD refreshes session lows, bears challenge 0.7000 mark


Share:
  • A combination of factors prompted some fresh selling around NZD/USD on Thursday.
  • Rebounding US bond yields, upbeat US data benefitted the USD and exerted pressure.

The NZD/USD pair dropped to fresh daily lows during the early North American session, with bears now awaiting a sustained break below the key 0.7000 psychological mark.

The pair struggled to capitalize on the previous day's post-US CPI positive move, instead met with some fresh supply on Thursday and snapped two consecutive days of the winning streak. Concerns about the potential economic fallout from the fast-spreading Delta variant of the coronavirus was seen as a key factor that acted as a headwind for the perceived riskier kiwi. This, along with a modest US dollar uptick, exerted some additional pressure on the NZD/USD pair.

The greenback was back in demand and stalled the overnight profit-taking slide amid the possibility for an earlier than anticipated tapering by the Fed. The market bets were reinforced following the release of the latest US Producer Price Index for July, which rose sharply for the sixth month in a row and offered little evidence of moderating inflationary pressures. This, in turn, triggered a goodish rebound in the US Treasury bond yields and underpinned the greenback.

Other economic data released from the US showed that the number of Americans claiming unemployment-related benefits fell to 375K during the week ending August 7 from the previous week's upwardly revised reading of 387K (385K reported earlier). Against the backdrop of Friday's blockbuster NFP report, the data marked another step towards the Fed's goal of substantial further progress in the labour market recovery. This extended additional support to the buck.

With the latest leg down, the NZD/USD pair has now reversed the overnight gains and some follow-through selling below the 0.7000 mark will expose weekly lows, around the 0.6970-65 region. This should now act as a key pivotal point for short-term traders. A sustained break below will set the stage for a further near-term depreciating move towards the lower boundary of a near two-month-old trading range support, around the 0.6925-20 region.

Technical levels to watch

NZD/USD

Overview
Today last price 0.7009
Today Daily Change -0.0032
Today Daily Change % -0.45
Today daily open 0.7041
 
Trends
Daily SMA20 0.6989
Daily SMA50 0.703
Daily SMA100 0.7095
Daily SMA200 0.7108
 
Levels
Previous Daily High 0.7063
Previous Daily Low 0.6991
Previous Weekly High 0.7089
Previous Weekly Low 0.6952
Previous Monthly High 0.7106
Previous Monthly Low 0.6881
Daily Fibonacci 38.2% 0.7036
Daily Fibonacci 61.8% 0.7019
Daily Pivot Point S1 0.7001
Daily Pivot Point S2 0.696
Daily Pivot Point S3 0.6929
Daily Pivot Point R1 0.7072
Daily Pivot Point R2 0.7104
Daily Pivot Point R3 0.7144

 

 

Share: Feed news

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Follow us on Telegram

Stay updated of all the news

Join Telegram

Recommended content


Follow us on Telegram

Stay updated of all the news

Join Telegram

Recommended content

Editors’ Picks

USD/JPY tumbles toward 132.00 after Japan confirms 'stealth intervention'

USD/JPY tumbles toward 132.00 after Japan confirms 'stealth intervention'

USD/JPY is sinking toward 132.00 in the Tokyo open as Japan's Finance Ministry confirmed a  stealth intervention in the forex market. The BoJ conducted an intervention in the yen on instructions from the Finance Ministry. Focus shifts to Fed's Powell. 

USD/JPY News

AUD/USD grinds above 0.6860 key support on softer Aussie trade surplus, RBA, Fed’s Powell eyed

AUD/USD grinds above 0.6860 key support on softer Aussie trade surplus, RBA, Fed’s Powell eyed

AUD/USD remains sidelined around the intraday high near 0.6890, portraying the typical pre-data anxiety, as the Aussie pair traders await the Reserve Bank of Australia’s (RBA) monetary policy meeting announcements on early Tuesday.

AUD/USD News

Gold struggles below $1,900 as Federal Reserve Chairman Jerome Powell’s speech looms

Gold struggles below $1,900 as Federal Reserve Chairman Jerome Powell’s speech looms

Gold price (XAU/USD) treads water around $1,865, following a corrective bounce off the one-month low, as the bullion traders await Federal Reserve (Fed) Chairman Jerome Powell’s speech amid hawkish bias over the United States central bank’s next move.

Gold News

Will Binance Coin price face a drawdown as Binance suspends USD bank transfers from February 8?

Will Binance Coin price face a drawdown as Binance suspends USD bank transfers from February 8?

Binance is the biggest cryptocurrency exchange in the world. It also emerged as a key player in the crypto industry owing to its initiatives following the FTX collapse in November 2022.

Read more

Reserve Bank of Australia Preview: No choice but to keep hiking rates Premium

Reserve Bank of Australia Preview: No choice but to keep hiking rates

The Reserve Bank of Australia (RBA) will announce its monetary policy decision on February 7, with the Board expected to pull the trigger by another 25 basis points (bps). 

Read more

Forex MAJORS

Cryptocurrencies

Signatures