- USD pauses a 10-day sell-off.
- Breaks below 0.7100.
- Unperturbed by upbeat NZ GDT price index.
The NZD/USD pair remains well offered below the 0.71 handle, as the bears extend the overnight correction from multi-month tops into Asia.
NZD/USD faces rejection just shy of 200-DMA of 0.7138
The Kiwi remains fell for the first time in eleven trading sessions, as the US dollar was offered some respite across the board, with markets resorting to cover their USD shorts ahead of the release of the FOMC Dec meeting minutes later on Wednesday.
However, it remains to be seen whether the spot extends its corrective slide into Europe, as upbeat Chinese Caixin manufacturing PMI as well as NZ GDT price index continue to keep the sentiment buoyed around the NZD.
The NZ GDT auction results showed a 2.2% increase in the latest fortnight versus a -3.9% decline seen at the last auction. Yesterday’s results revealed the last 5 of 6 auctions have seen prices fall.
More so, higher oil prices combined with risk-on moves seen in the Asian equities also help to keep the downside limited in the spot. Focus now shifts towards the US ISM manufacturing PMI release for fresh momentum on the USD price-action.
The pair finds next resistances at 0.7138 (200-DMA), 0.7150 (psychological levels), 0.7172 (Oct 19 high). Meanwhile, the supports are located at 0.7063 (10-DMA), 0.7027 (100-DMA) and 0.7000 (key support).
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