NZD/USD slumps in Monday Greenback bid, loses the 0.6000 handle

The Kiwi is following the broader market into the downside against the US Dollar.
Risk aversion is the name of the game for Monday as the DXY extends its climb.
Kiwi traders will be looking ahead to Wednesday’s rate call from the RBNZ.

Joshua Gibson FXStreet

The NZD/USD is backsliding for Monday, falling around fifty pips and facing rejection from the 0.6000 major handle as risk-off flows drive the Greenback (USD) higher across the board.

The Kiwi peaked last Friday at 0.6050 before getting knocked back as market risk appetite evaporates, extending risk asset declines against the US Dollar. Fears of a global recession, hawkish comments from Federal Reserve (Fed) officials, and climbing US Treasury yields are all intertwining to send the Greenback higher across the board.

NZD traders will be looking ahead to Wednesday’s latest rate call and monetary policy statement from the Reserve Bank of New Zealand (RBNZ); with the RBNZ broadly expected to hold rates steady at 5.5%, traders will be focusing on the RBNZ’s statement to glean any hints about the future of the rate hike cycle moving forward.

NZD/USD technical outlook

The Kiwi's decline for Monday sees the NZD/USD pair slipping into the bearish side of the 200-hour Simple Moving Average (SMA). The pair is down over a hundred pips from Friday's top at 0.6050, leaving the NZD/USD down 1.7% and set for a bearish tip into last week's bottom near 0.5900.

Daily candlesticks have the NZD/USD hung up on the 34-day Exponential Moving Average, with technical resistance from the 100-day SMA near 0.6075.

A sustained bear run will see the pair set to challenge 2023's lows of 0.5510, while a bullish reversal will need to overcome the 200-day SMA currently parked just below the 0.6200 handle.

NZD/USD daily chart

NZD/USD technical levels

NZD/USD

Overview
Today last price	0.5951
Today Daily Change	-0.0042
Today Daily Change %	-0.70
Today daily open	0.5993

Trends
Daily SMA20	0.5923
Daily SMA50	0.5988
Daily SMA100	0.6079
Daily SMA200	0.6179

Levels
Previous Daily High	0.605
Previous Daily Low	0.5932
Previous Weekly High	0.605
Previous Weekly Low	0.5899
Previous Monthly High	0.605
Previous Monthly Low	0.5847
Daily Fibonacci 38.2%	0.6005
Daily Fibonacci 61.8%	0.5977
Daily Pivot Point S1	0.5933
Daily Pivot Point S2	0.5873
Daily Pivot Point S3	0.5815
Daily Pivot Point R1	0.6051
Daily Pivot Point R2	0.611
Daily Pivot Point R3	0.617

Author

Joshua Gibson

FXStreet

Joshua joins the FXStreet team as an Economics and Finance double major from Vancouver Island University with twelve years' experience as an independent trader focusing on technical analysis.

Markets move fast. We move first.

Orange Juice Newsletter brings you expert driven insights - not headlines. Every day on your inbox.

Editor's Picks

EUR/USD falls toward 1.1700 on broad USD recovery

EUR/USD turns south and declines toward 1.1700 on Wednesday. The US Dollar gathers recovery momentum and forces the pair to stay on the back foor, as traders look to USD short-covering ahead of US inflation report on Thursday. However, the downside could be capped by hawkish ECB expectations.

GBP/USD trades deep in red below 1.3350 after soft UK inflation data

GBP/USD stays under strong selling pressure midweek and trades below 1.3350. The UK annual headline and core CPI rose by 3.2% each, missing estimates of 3.5% and 3.4%, respectively, reaffirming dovish BoE expectations and smashing the Pound Sterling across the board ahead of Thurday's BoE policy announcements.

Gold clings to moderate daily gains above $4,300

Following Tuesday's volatile action, Gold regains its traction on Wednesday and trades in positive territory above $4,300. While the buildup in the USD recovery momentum caps XAU/USD's upside, the cautious market stance helps the pair hold its ground.