NZD/USD retraces daily drop supported by risk-on flows, trades above 0.6760


  • RBNZ's Orr says policy easing bias remains in place.
  • Upbeat sentiment helps NZD recover its losses.
  • DXY struggles to rise above 97 for the second straight day.

The NZD/USD pair lost its traction during the Asian trading hours and dropped to its lowest level in five days at 0.6740 after the Reserve Bank of New Zealand Governor Adrian Orr said that the NZD's exchange rate was around a "happy space" and added that the monetary policy easing bias would remain in place for now. Following that drop, however, the pair gained traction in the second half of the day with the risk-sensitive kiwi taking advantage of the improving market sentiment. At the moment, the pair is trading at 0.6768, adding 0.1% on a daily basis.

Meanwhile, the bi-weekly GDT price auction yielded a 0.5% increase in the GDT price index and beat the market expectation of -0.5%.

Upbeat first-quarter earnings figures from the U.S. corporations and positive sentiment data from the euro area today allowed risk-on flows to dominate the market action. The 10-year U.S. T-bond yield gained more than 1% today to rise to its highest level since March 20 and major equity indexes in the United States opened in the positive territory to reflect the strong risk-appetite.

On the other hand, today's data from the U.S. revealed that industrial production contracted 0.1% on a monthly basis in March to fall short of the market expectation of +0.2% and weighed on the greenback to help the pair continue to push higher. At the moment, the DXY was virtually unchanged on a daily basis at 96.94.

In the early trading hours of the Asian session, inflation report from New Zealand, which is expected to show the CPI edging down to 1.7% in the first quarter from 1.9% in the last quarter of 2018, will be looked upon for fresh impetus. A soft inflation reading is likely to weigh on the NZD as it would allow the RBNZ to stay dovish in the near-term.

Technical levels to consider

NZD/USD

Overview
Today last price 0.6766
Today Daily Change 0.0002
Today Daily Change % 0.03
Today daily open 0.6764
 
Trends
Daily SMA20 0.6801
Daily SMA50 0.6814
Daily SMA100 0.6808
Daily SMA200 0.6734
Levels
Previous Daily High 0.6784
Previous Daily Low 0.675
Previous Weekly High 0.6783
Previous Weekly Low 0.6713
Previous Monthly High 0.6939
Previous Monthly Low 0.6744
Daily Fibonacci 38.2% 0.6771
Daily Fibonacci 61.8% 0.6763
Daily Pivot Point S1 0.6748
Daily Pivot Point S2 0.6732
Daily Pivot Point S3 0.6714
Daily Pivot Point R1 0.6782
Daily Pivot Point R2 0.68
Daily Pivot Point R3 0.6816

 

 

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.

Feed news

Latest Forex News

Editors’ Picks

EUR/USD trims early gains, dangerously close to 1.1200

The positive tone of the pair fades in the American afternoon as demand for the dollar resumes, despite softer-than-expected US data. All eyes on the Fed this week.

EUR/USD News

GBP/USD extends decline, pierces 1.2550

Despite moving in slow-motion, GBP/USD decline is continuous with the pair trading at levels last seen in January, amid political uncertainty weighing on Sterling.

GBP/USD News

USD/JPY remains directionless above mid-108s on Monday

The USD/JPY pair is struggling to make a decisive move in either direction on Monday as the slightly upbeat market sentiment doesn't allow the safe-haven JPY to gather strength.

USD/JPY News

Gold remains on track to close with small losses below $1340

The XAU/USD pair, which closed higher on the weekly chart for the fourth straight time last week, is fluctuating in a relatively tight range on Monday amid a lack of significant fundamental drivers that had a lasting impact on the greenback's market valuation or the risk perception.

Gold News

Gold: Signs of bullish exhaustion ahead of the Fed

Gold's rally seems to have run its course with signs of bullish exhaustion emerging on technical charts ahead of Wednesday's FOMC (Federal Open Market Committee) rate decision.

Read more

Majors

Cryptocurrencies

Signatures