• US dollar holds negative tone after economic data.
  • Improvement in market sentiment supports the kiwi.
  • NZD/USD holds far from the one-year low it hit on Tuesday.

The NZD/USD printed a fresh six-day high during the American session at 0.6867 and then pulled back as the US dollar attempted a bounce during Powell’s testimony. The pair dropped to 0.6840. It is modestly higher for the day, which could be seen as positive considering it bottomed on Tuesday, at 0.6772, the lowest in a year.

US data, Powell, USD

The greenback remained mostly unaffected by economic data and more recently rose marginally, during Fed Chair Powell comments. He reiterated the need to move on from the word “transitory” and warned that the risk of higher inflation has move up.

US yields are rising moderately on Wednesday offering only a small support to the dollar across the board.  The 10-year stands at 1.48%. In Wall Street, stocks are rising sharply. The Dow Jones gains 1.45% and the Nasdaq by 1.75%.

The ADP report showed private payroll rose by 534K in November, in line with expectations. The ISM Manufacturing Index showed an acceleration in November from 60.8 to 61.1, also near market consensus. Later, the Fed will release the Beige Book and on Friday will be the turn of the NFP report.

Still bearish but…

The primary trend in NZD/USD is bearish. The area around 0.6770 is a key support: horizontal levels and the convergence of the 100 and 200-week moving average. If it remains above, the kiwi could stage a rebound. A weekly close below, should point to more losses over the medium term.

In the very short-term, a firm break above 0.6860 would be a positive development for the kiwi while under 0.6830, the intraday bias would change from positive/neutral to negative.

Technical levels

NZD/USD

Overview
Today last price 0.6858
Today Daily Change 0.0034
Today Daily Change % 0.50
Today daily open 0.6824
 
Trends
Daily SMA20 0.6998
Daily SMA50 0.7027
Daily SMA100 0.7019
Daily SMA200 0.7079
 
Levels
Previous Daily High 0.6857
Previous Daily Low 0.6773
Previous Weekly High 0.7014
Previous Weekly Low 0.6804
Previous Monthly High 0.7199
Previous Monthly Low 0.6773
Daily Fibonacci 38.2% 0.6825
Daily Fibonacci 61.8% 0.6805
Daily Pivot Point S1 0.6779
Daily Pivot Point S2 0.6734
Daily Pivot Point S3 0.6694
Daily Pivot Point R1 0.6863
Daily Pivot Point R2 0.6902
Daily Pivot Point R3 0.6948

 

 

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