• Dollar jumps after Powell’s comments, reaching fresh YTD highs.
  • NZD/USD tumbles more than 80 pips from the top to the lowest since November 2020.

The NZD/USD peaked at 0.6855, the highest level since Thursday and then collapsed amid a rally of the US dollar across the board. It bottomed so far at 0.6771, the lowest since November of last year. It remains near the lows, amid rising volatility.

It all changed in one minute

The US dollar was under pressure across the board amid lower US yields. Comments from Fed Chair Powell changed it all. The dollar jumped and is testing recent cycle highs versus it main rivals. It erased in a few minutes recent losses.

The NZD/USD tumbled and is testing the 0.6770 zone. A break lower should clear the way to more losses. The change in the direction of the dollar was abrupt and took place after Powell mentioned it is time to remove the word “transitory” from inflation. His comments boosted US yields from monthly lows and sent equity prices lower.

The combination of risk aversion and a rebound in yields favor the dollar. If the situation does not change, the rally of the dollar could continue. On the contrary, a recovery of NZD/USD back above 0.6800 could suggest a potential interim bottom.

Technical levels

NZD/USD

Overview
Today last price 0.6814
Today Daily Change 0.0005
Today Daily Change % 0.07
Today daily open 0.6809
 
Trends
Daily SMA20 0.7012
Daily SMA50 0.703
Daily SMA100 0.702
Daily SMA200 0.7081
 
Levels
Previous Daily High 0.684
Previous Daily Low 0.6787
Previous Weekly High 0.7014
Previous Weekly Low 0.6804
Previous Monthly High 0.7219
Previous Monthly Low 0.6876
Daily Fibonacci 38.2% 0.6807
Daily Fibonacci 61.8% 0.682
Daily Pivot Point S1 0.6784
Daily Pivot Point S2 0.6759
Daily Pivot Point S3 0.6731
Daily Pivot Point R1 0.6837
Daily Pivot Point R2 0.6865
Daily Pivot Point R3 0.689

 

 

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