• The NZD/USD gains despite mixed market sentiment but struggles at 0.7200.
  • The commodity currencies edge higher against the greenback.
  • NZD/USD: The daily chart confirms the upward bias, but NZD bulls, to accelerate the trend, will need to reclaim 0.7200.

The NZD/USD advances for the fourth consecutive day, despite mild risk-off market sentiment is up 0.27%, trading at 0.7183 during the New York session at the time of writing.

Major US equity stocks are mixed as the New York session wanes.  The S&P and the Nasdaq Composite rise 0.09% and 0.94%, respectively, while on the other hand, the Dow Jones losses 0.27%. Investors remain at bay due to month-end flows, US fiscal policy uncertainties, and central bank pandemic-stimulus ends.

That said, antipodean currencies and the Canadian dollar advance against the greenback. Meanwhile, the US Dollar Index, which tracks the buck’s performance against a basket of its peers, slumps 0.16%, sits at 93.79. 

It is worth noting that on Wednesday, the Bank of Canada ended its weekly QE program, adding to the Reserve Bank of New Zealand as the only central banks, that are normalizing their monetary policy.

Turning to US fiscal policy, according to wires, US President Joe Biden reportedly agreed to push for a deal as soon as possible in a meeting with lawmakers. Also, the US Senate Finance Committee Chairman Ron Wyden unveiled a 23.8% tax proposal focused on unrealized gains of assets held by billionaires, affecting 700 people.

Macroeconomic data from New Zealand reported that the ANZ Business Confidence dropped from -8.6 in September to -13.4 in October. Furthermore, Statistics of New Zealand said that the Trade Balance deficit expanded in September.

Meanwhile, in the US economic docket, Durable Good Orders for September contracted by 0.4%, less than the 1.1% expected by analysts. On the other hand, the Nondefense orders, excluding aircraft, expanded by 0.8%, higher than the 0.5% estimated.

NZD/USD Price Forecast: Technical outlook

The NZD/USD daily chart depicts the pair has a bullish bias, portrayed by daily moving averages (DMA’s) beneath the spot price, with an upward slope.

Furthermore, the Relative Strength Index (RSI), a momentum indicator at 66, edges slightly up, confirming the abovementioned, but the trend seems to fade. NZD bulls to accelerate the upward trend speed will need a daily close above 0.7200. In that outcome, they will find immediate resistance at 0.7219. A clear break of the latter would expose crucial supply zones, the June 7 high at 0.7244, followed by the 0.7300 thresholds.

NZD/USD TECHNICAL LEVELS TO WATCH

 

Overview
Today last price 0.7179
Today Daily Change 0.0015
Today Daily Change % 0.21
Today daily open 0.7164
 
Trends
Daily SMA20 0.7022
Daily SMA50 0.7026
Daily SMA100 0.702
Daily SMA200 0.7102
 
Levels
Previous Daily High 0.7195
Previous Daily Low 0.715
Previous Weekly High 0.7219
Previous Weekly Low 0.7049
Previous Monthly High 0.7171
Previous Monthly Low 0.6859
Daily Fibonacci 38.2% 0.7178
Daily Fibonacci 61.8% 0.7167
Daily Pivot Point S1 0.7144
Daily Pivot Point S2 0.7125
Daily Pivot Point S3 0.7099
Daily Pivot Point R1 0.7189
Daily Pivot Point R2 0.7215
Daily Pivot Point R3 0.7234

 

 

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