• NZD/USD fades the bounce from two-week lows, as USD bulls return.
  • Post-Fed risk-on mood, recovery in the US yields drive the USD uptick.
  • Focus shifts to the US NFP release for a decisive move in the kiwi.

NZD/USD is back in the red zone, heading towards the 0.7150 level in Thursday’s Asian trading.

The resurgent demand for the US dollar amid a rebound in the US Treasury yields is weighing on the kiwi’s recovery from two-week lows of 0.7092 reached on Tuesday.

The yields and the dollar are reversing the US Federal Reserve (Fed) inflicted losses, in the face of Chair Jerome Powell turning out dovish, citing patience on raising the interest rates until the central bank’s maximum employment goal is achieved.

The Fed announced tapering of its bond-buying programme by $15 billion per month while noting the rising price pressures are ‘expected to be transitory’.

The dovish stint by Powell and Co. is contradicting the strong hawkish expectations from the Reserve Bank of New Zealand (RBNZ). The RBNZ is expected to hike rates by as much as 50bps when its meets later this month.

The monetary policy divergence between the Fed and RBNZ could help limit any pullback in NZD/USD, as traders may readjust their positions ahead of Friday’s critical US Nonfarm Payrolls (NFP) release.

In the meantime, the US weekly Jobless Claims and goods trade balance could entertain the traders this Thursday.

NZD/USD technical levels to consider

NZD/USD

Overview
Today last price 0.7157
Today Daily Change -0.0002
Today Daily Change % -0.03
Today daily open 0.7159
 
Trends
Daily SMA20 0.7094
Daily SMA50 0.7058
Daily SMA100 0.7021
Daily SMA200 0.7101
 
Levels
Previous Daily High 0.7174
Previous Daily Low 0.7102
Previous Weekly High 0.7218
Previous Weekly Low 0.713
Previous Monthly High 0.7219
Previous Monthly Low 0.6876
Daily Fibonacci 38.2% 0.7147
Daily Fibonacci 61.8% 0.713
Daily Pivot Point S1 0.7117
Daily Pivot Point S2 0.7074
Daily Pivot Point S3 0.7045
Daily Pivot Point R1 0.7188
Daily Pivot Point R2 0.7217
Daily Pivot Point R3 0.726

 

 

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.

Feed news Join Telegram

Recommended content


Recommended content

Editors’ Picks

EUR/USD ticks higher with FOMC Meeting Minutes

EUR/USD ticks higher with FOMC Meeting Minutes

EUR/USD ticked north following the release of the Federal Reserve’s document but remains subdued below the 1.0200 figure. US policymakers unanimously agreed to hike rates by 75 bps, seeing a slowing pace of hikes at some point.

EUR/USD News

GBP/USD extends recovery but remains in the red

GBP/USD extends recovery but remains in the red

GBP/USD is trading at around 1.2070, bouncing from an intraday low of 1.2027 but still down on the day. FOMC Meeting Minutes underpin high-yielding assets as policymakers hint at softer rate hikes in the near future.

GBP/USD News

Gold bears pressuring a critical Fibonacci support

Gold bears pressuring a critical Fibonacci support

The dollar is the overall winner across the FX board today and ahead of the release of the FOMC Meeting Minutes, with gold trading near a fresh one-week low.  XAUUSD is pressuring the 38.2% retracement of its latest daily advance.

Gold News

Shiba Inu on fire, another price rally around the corner?

Shiba Inu on fire, another price rally around the corner?

Shiba is closer to its breakout according to analysts. While declining trade volume and inflows to SHIB are typical of a bearish trend reversal, analysts remain bullish on SHIB. They predict recovery after the meme coin yielded nearly 50% gains within a week. 

Read more

FXStreet Premium users exceed expectations

FXStreet Premium users exceed expectations

Tap into our 20 years Forex trading experience and get ahead of the markets. Maximize our actionable content, be part of our community, and chat with our experts. Join FXStreet Premium today!

BECOME PREMIUM

Forex MAJORS

Cryptocurrencies

Signatures