• NZD/USD extends the heaviest fall since June after the RBNZ Interest Rate Decision.
  • RBNZ policymakers left benchmark interest rate unchanged but stay ready for a rate hike.
  • Market sentiment dwindles amid virus woes, Fed tapering concerns, NZ reports six new covid cases linked to the first one.
  • US dollar pullback awaits FOMC minutes for clearer direction, risk catalysts, Orr's presser are important too.

NZD/USD takes offers around 0.6875, the lowest level in 2021, after the Reserve Bank of New Zealand (RBNZ) disappointed global markets with no rate change during early Wednesday.

In its latest moves, the RBNZ kept the benchmark interest rate unchanged at 0.25% versus the widely expected rate hike of 0.25%. Even so, the New Zealand (NZ) central bank said, “Committee discussed the merits of an increase in the OCR at this meeting and considered the implications of alternative sequencing of ocr changes over time.”

Read: Breaking: RBNZ keeps OCR unchanged at 0.25%, NZD/USD slumps

While reacting to the RBNZ moves, the NZD/USD traders ignore the US Dollar Index (DXY) pullback. That said, the DXY snaps a two-day uptrend while easing from a one-week high to 93.11 by the press time.

While the market sentiment remains pessimistic, led by the coronavirus woes, mixed comments from the US Federal Reserve policymakers seem to pull the DXY back amid a cautious mood ahead of the Federal Open Market Committee (FOMC) Minutes.

It’s worth noting that there are seven cases of the virus in New Zealand versus the previous day’s first reported from Auckland. Elsewhere, Australia’s New South Wales report all-time high covid cases, propelling the national count to the fresh top since August 2020 whereas China’s infection numbers eased at the latest.

Amid these lays, the US 10-year Treasury yields stay firmer around 1.26% but the S&P 500 Futures print mild losses by the press time.

Moving on, covid updates will be the key ahead of the FOMC minutes but the USD moves will be important to follow. It shuld be noted that RBNZ Governor Adrian Orr will hold a press conference soon and the NZD/USD is up for reacting on that too.

Read: FOMC Minutes July Preview: More new questions than answers

Technical analysis

A daily closing beyond 20-DMA, near the 0.7000 threshold, becomes necessary for the NZD/USD corrective pullback, until then, bears can aim for the 0.6900 round figure. If the quote remains weak below 0.6900, the 61.8% Fibonacci retracement of August 2020 to February 2021 upside, close to 0.6860, will be in focus. On the contrary, a descending resistance line from late May, around 0.7040, adds to the upside filters beyond the 20-DMA immediate hurdle.

Additional important levels

Overview
Today last price 0.6944
Today Daily Change 0.0024
Today Daily Change % 0.35%
Today daily open 0.692
 
Trends
Daily SMA20 0.6996
Daily SMA50 0.7014
Daily SMA100 0.7096
Daily SMA200 0.7112
 
Levels
Previous Daily High 0.7032
Previous Daily Low 0.69
Previous Weekly High 0.7063
Previous Weekly Low 0.6969
Previous Monthly High 0.7106
Previous Monthly Low 0.6881
Daily Fibonacci 38.2% 0.695
Daily Fibonacci 61.8% 0.6982
Daily Pivot Point S1 0.6869
Daily Pivot Point S2 0.6819
Daily Pivot Point S3 0.6737
Daily Pivot Point R1 0.7001
Daily Pivot Point R2 0.7083
Daily Pivot Point R3 0.7133

 

 

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

When is Australia Retail Sales and how could it affect AUD/USD?

When is Australia Retail Sales and how could it affect AUD/USD?

AUD/USD picks up bids to pare recent losses around the two-year low ahead of the key Aussie data. The reason could be linked to the light calendar and the traders’ preparations for the stated statistics.

AUD/USD News

EUR/USD braces for fresh multi-year low around 0.9600, ECB’s Lagarde, Fed’s Powell eyed

EUR/USD braces for fresh multi-year low around 0.9600, ECB’s Lagarde, Fed’s Powell eyed

EUR/USD holds lower grounds around the yearly bottom marked on Monday, despite picking up bids to 0.9600 during Wednesday’s Asian session, as risk-aversion intensifies. Firmer US data, hawkish Fedspeak joined upbeat yields to weigh on prices.

EUR/USD News

Gold turns sideways around $1,630 as investors await Fed Powell’s speech

Gold turns sideways around $1,630 as investors await Fed Powell’s speech

Gold price is displaying a dull performance as investors have sidelined ahead of the speech from Fed chair Jerome Powell. The precious metal is juggling around $1,630.00 after a modest decline from the critical hurdle of $1,640.00.

Gold News

Ethereum price still stands a chance to rally to $1,500 for these reasons

Ethereum price still stands a chance to rally to $1,500 for these reasons

Ethereum price failed and was rejected at the 38.2% Fibonacci retracement level. There is a significant downtick in bearish momentum amidst the recent decline. Invalidation of an uptrend potential depends on the swing low at $1,006 remaining untagged.

Read more

Lower gas prices and favorable views of labor market again boost confidence

Lower gas prices and favorable views of labor market again boost confidence

The Consumer Confidence Index rose to its highest level since April, and now sits more than 12 points higher than where it was just two months ago. Falling gasoline prices and a still-tight labor market are the main reasons we have seen a recent rebound in confidence.

Read more

Forex MAJORS

Cryptocurrencies

Signatures