NZD/USD slumps to fresh 10-day lows near 0.6660

NZD/USD is extending its slide after closing in red on Monday.
US Dollar Index continues to push higher toward 93.50.
Risk-off market mood weighs on risk-sensitive NZD on Tuesday.

Eren Sengezer FXStreet

The NZD/USD pair closed the first day of the week in the negative territory and continued to push lower on Tuesday. As of writing, the pair, which touched a fresh 10-day low of 0.6659, was trading at 0.6666, losing 0.35% on a daily basis.

DXY extends rally on Tuesday

The broad-based USD strength and risk aversion seem to be weighing on NZD/USD. On Monday, US President Donald Trump said that they will prohibit federal contracts to US companies that outsource to China and caused US-china tensions to reescalate. Meanwhile, The New York Times reported that the US was considering banning some or all products made with cotton from China’s Xinjiang province.

Reflecting the dismal market mood, major European equity indexes trade in the negative territory and the S&P 500 futures are losing 0.55%.

On the other hand, risk-off flows help the greenback continue to gather strength against its rivals. After closing the fifth straight day in the positive territory on Monday, the US Dollar Index (DXY) preserved its bullish momentum and was last seen gaining 0.33% on the day at 93.36.

The IBD/TIPP Economic Optimism Index will be the only data featured in the US economic docket and the market sentiment is likely to remain the primary driver of NZD/USD's movements.

Technical levels to watch for

NZD/USD

Overview
Today last price	0.6665
Today Daily Change	-0.0026
Today Daily Change %	-0.39
Today daily open	0.6691

Trends
Daily SMA20	0.6625
Daily SMA50	0.6606
Daily SMA100	0.6418
Daily SMA200	0.6387

Levels
Previous Daily High	0.6724
Previous Daily Low	0.6689
Previous Weekly High	0.679
Previous Weekly Low	0.6668
Previous Monthly High	0.6764
Previous Monthly Low	0.6488
Daily Fibonacci 38.2%	0.6702
Daily Fibonacci 61.8%	0.6711
Daily Pivot Point S1	0.6679
Daily Pivot Point S2	0.6666
Daily Pivot Point S3	0.6643
Daily Pivot Point R1	0.6714
Daily Pivot Point R2	0.6737
Daily Pivot Point R3	0.6749

Author

Eren Sengezer

FXStreet

As an economist at heart, Eren Sengezer specializes in the assessment of the short-term and long-term impacts of macroeconomic data, central bank policies and political developments on financial assets.

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