NZD/USD refreshes session tops, beyond mid-0.7100s amid renewed USD selling


  • NZD/USD attracted some dip-buying on Monday amid some renewed USD selling bias.
  • Reduced Fed rate hike bets, sliding US bond yields continued undermining the greenback.
  • Worries about surging COVID-19 cases might keep a lid on any further gains for the pair.

The NZD/USD pair built on its steady intraday recovery from three-day lows and refreshed daily tops, around the 0.7160 region during the early European session.

The pair opened with a modest bearish gap on the first day of a new trading week, albeit lacked any follow-through selling, instead attracted some dip-buying near the 0.7125-20 region. Renewed fears about another dangerous wave of coronavirus infections globally weighed on investors' sentiment and turned out to be a key factor that weighed on the perceived riskier kiwi.

However, diminishing odds for an earlier Fed lift-off kept the US dollar bulls on the defensive and extended some support to the NZD/USD pair. Despite the incoming strong US economic data, investors seem convinced that the Fed will keep rates near zero levels for a longer period. The greenback was further pressured by the recent decline in the US Treasury bond yields.

It is worth reporting that the yield on the benchmark 10-year US government bond retreated further from a more than one-year peak of 1.7760% touched in March and sank to 1.5280% last week. This, in turn, was seen as another factor that might continue to undermine the greenback and supports prospects for a further near-term appreciating move for the NZD/USD pair.

There isn't any major market-moving economic data due for release from the US. Hence, the US bond yields might continue to play a key role in influencing the USD price dynamics. Apart from this, the broader market risk sentiment should further allow traders to grab some short-term opportunities around the NZD/USD pair, though COVID-19 jitters might cap gains.

Technical levels to watch

NZD/USD

Overview
Today last price 0.7156
Today Daily Change 0.0020
Today Daily Change % 0.28
Today daily open 0.7136
 
Trends
Daily SMA20 0.7042
Daily SMA50 0.7157
Daily SMA100 0.7145
Daily SMA200 0.6911
 
Levels
Previous Daily High 0.718
Previous Daily Low 0.7131
Previous Weekly High 0.7181
Previous Weekly Low 0.7004
Previous Monthly High 0.7308
Previous Monthly Low 0.6943
Daily Fibonacci 38.2% 0.715
Daily Fibonacci 61.8% 0.7161
Daily Pivot Point S1 0.7118
Daily Pivot Point S2 0.71
Daily Pivot Point S3 0.707
Daily Pivot Point R1 0.7167
Daily Pivot Point R2 0.7197
Daily Pivot Point R3 0.7215

 

 

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