NZD/USD stays sidelined below 0.7000 as traders seek fresh clues

  • NZD/USD seesaws inside a 20-pip range after bouncing off yearly low.
  • Market sentiment remains directionless following a positive day.
  • Risk catalysts, US data and ECB will be crucial for immediate direction.

NZD/USD struggles to extend the previous day’s recovery moves, the strongest in over a week, around 0.6960-80 area amid the early Asian session on Thursday. In doing so, the kiwi pair portrays the pre-ECB trading lull amid a light calendar.

The quote’s recovery moves from the eight-month low could be traced to the upbeat performance of US equities amid strong earnings. The same dragged the US Dollar Index (DXY) from a three-month high while also snapping a four-day uptrend. It’s worth noting that the economic optimism also backed the US Treasury yields to post a second positive day following its drop to the early February levels on Monday.

Challenging the moves were headlines concerning the coronavirus Delta variant as Australia marked the highest daily infections since September whereas figures from the UK and Indonesia were also grim. Even so, policymakers were optimistic to overcome the pandemic, as they did in the first wave.

The same could be identified from comments of World Health Organisation (WHO) head Tedros Adhanom Ghebreyesus who said, per Reuters, “The world's leading economies could bring the covid-19 pandemic under control in months.”

Other than the covid woes, uncertainty over US President Joe Biden’s infrastructure spending plan and US budget also challenged the NZD/USD buyers but failed.

New Zealand’s Credit Card Spending for June was also among the negatives that initially weighed on the kiwi pair before the bullish play during the US session. That said, the early signal for retail sales eased to 6.3% YoY versus 27.2% prior.

Given the lack of major data/events, coupled with cautious mood ahead of the ECB, NZD/USD may remain sidelined but the challenges to the risk appetite could keep prices pressured.

In this regard, ANZ Bank said, “There is no local data today or tomorrow, but there are some big global events including the ECB meeting, which will shape how EUR trades, and by extension the NZD and other correlated currencies. In the meantime, it’s back to watching bonds, which are driving FX.”

Technical analysis

Although the monthly support line teases NZD/USD bears around 0.6915-10, the pair’s recovery moves need to cross 21-DMA immediate hurdle near the 0.7000 threshold to recall short-term buyers. 

Additional important levels

Today last price 0.6965
Today Daily Change 0.0047
Today Daily Change % 0.68%
Today daily open 0.6918
Daily SMA20 0.6999
Daily SMA50 0.7104
Daily SMA100 0.7122
Daily SMA200 0.708
Previous Daily High 0.6955
Previous Daily Low 0.6881
Previous Weekly High 0.7046
Previous Weekly Low 0.6917
Previous Monthly High 0.7289
Previous Monthly Low 0.6923
Daily Fibonacci 38.2% 0.6909
Daily Fibonacci 61.8% 0.6927
Daily Pivot Point S1 0.6881
Daily Pivot Point S2 0.6844
Daily Pivot Point S3 0.6807
Daily Pivot Point R1 0.6955
Daily Pivot Point R2 0.6992
Daily Pivot Point R3 0.7029



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

Latest Forex News

Latest Forex News

Editors’ Picks

EUR/USD bulls coming up for their last breath ahead of ECB?

EUR/USD bulls come up for air ahead of the ECB where bias is skewed to the downside. The single unit travelled from a low of 1.1751 to a high of 1.1804 on the day following weakness in the greenback and as traders get set for the European Central Bank on Thursday. 


GBP/USD shrugs off Brexit concerns and rebounds above 1.3650

GBP/USD is trading above 1.3650, benefiting from a better market mood. Earlier, the pound struggled with a fresh EU-UK clash over the Northern Irish protocol and high levels of covid cases. 


Gold bears chipping away at bull's commitments at $1,800

The US dollar is earmarked by some analysts as a stronger for longer trade-off. At the time of writing, XAU/USD is trading at 41,803.23 and down some 0.4% on the day after falling from a high of $1,813 to a low of 41,794.66.

Gold News

Crypto market starts its engines, as ETH targets best day since May

BTC is on pace for the best day since June 13, remains down 8% for July. ETH staging a rebound of 12% from the dominant support framed around $1,700. XRP up 10% today after striking an oversold reading on the daily RSI.

Read more

Earnings mostly impress, bond market selloff may last, oil rises, gold slumps, Bitcoin boom

The lessons learned from the bond market should be that Wall Street needs to expect excessive volatility over the next few months as the Fed manages a taper announcement as pressure grows for them to normalize rates. 

Read more