- NZD/USD trades lower on Wednesday, stays directed towards weekly lows.
- Lower US Treasury yields undermine the demand for the US dollar.
- Risk aversion amid falling equities and downbeat Chinese economic data weighs on Kiwi.
NZD/USD extends the previous session’s losses on Wednesday’s Asian session. The pair opened higher and hovered in a very minute trading band with no meaningful traction.
At the time of writing, NZD/USD is trading at 0.7088, down 0.14% for the day,
The US Dollar Index (DXY), which measures the greenback performance against its six major rivals stays strong near 92.70 despite a downtick in the US 10-year benchmark yields.
The US Treasury yields turns lower to 1.28%, after touching a near two month low of 1.27% early in the week.
Investors remain invested in the greenback in a general risk-averse environment and softer US CPI data. The US Consumer Price Index (CPI) came at 0.3% in August as compared to the previous 0.5% rise, and below the market expectations of 0.5%.
On the other hand, Kiwi lost its momentum on reduced risk appetite among investors in the wake of the renewed COVID-19 restrictions and dismal Chinese data.
It is worth noting that S&P 500 Futures were trading at 4,443.06, down 0.57% for the day.
As per the latest report, China’s Industrial Production rose grew by 5.3% in August on yearly basis, as compared to a 6.4% rise in the previous month and much below the market expectations of 5.8%. The is the weakest growth in the data since July 2020 on COVID-19 curbs and supply chain disruptions. Along with that, Retail sales gained 2.5% in August, falling sharply from 8.5% in the previous month, and missing market consensus of 11.5%.
Being the largest trade partner, risk-prone Kiwi is directly influenced by the downbeat economic data.
As for now, all eyes are on the US Industrial Production data and NY Empire State manufacturing Index to take fresh trading impetus.
NZD/USD additional levels
|Today last price||0.7086|
|Today Daily Change||-0.0013|
|Today Daily Change %||-0.18|
|Today daily open||0.7099|
|Previous Daily High||0.7151|
|Previous Daily Low||0.7081|
|Previous Weekly High||0.7162|
|Previous Weekly Low||0.7076|
|Previous Monthly High||0.7089|
|Previous Monthly Low||0.6805|
|Daily Fibonacci 38.2%||0.7108|
|Daily Fibonacci 61.8%||0.7125|
|Daily Pivot Point S1||0.7069|
|Daily Pivot Point S2||0.704|
|Daily Pivot Point S3||0.6999|
|Daily Pivot Point R1||0.714|
|Daily Pivot Point R2||0.7181|
|Daily Pivot Point R3||0.721|
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.