• NZD/USD snaps two-day uptrend, retreats towards yearly low.
  • New Zealand’s ANZ Business Confidence, Activity Outlook flashed upbeat numbers for September.
  • Market sentiment remains choppy even as yields regain upside traction.
  • Bearish bias remains more favorable amid recession fears, US GDP eyed.

NZD/USD remains sidelined around 0.5690, recently bouncing off the daily low, as buyers and sellers jostle over the mixed catalysts during early Thursday in Europe. That said, the quote’s latest weakness contrasts with the broad pessimism while the upbeat data at home fail to convince the bulls.

Australia and New Zealand Banking Group (ANZ) unveiled September’s Activity Outlook and Business Confidence figures for New Zealand during the early Asian session. As per the release, the ANZ Business Confidence improved to -36.7 versus -52.1 expected and -47.8 prior whereas the Activity Outlook gauge also rose to -1.8% from -6.3% market forecasts and -4.0% previous readings.

Elsewhere, China’s Vice Foreign Minister Ma Zhouxu said, per Reuters, “We Chinese will not capitulate. We will not sit and do nothing while our country's interests are being harmed,” suggesting further Sino-American tussles. Also from the Chinese were headlines that the People’s Bank of China’s (PBOC) first increase in the onshore yuan fix in nine days and plans to issue 2.5 trillion yuan in government bonds in Q4.

It should be noted that the markets’ doubts about the Bank of England’s (BOE) capacity to restore the British economic performance while keeping the recently criticized fiscal plan weigh on the sentiment. Additionally, the hawkish commentary from the global central bankers, including those from Europe and the US, joins the looming energy crisis in Europe and Russia’s hesitance to respect the Western pressure to exert additional downside pressure on the major currency pair.

Against this backdrop, the US 10-year Treasury bond yields pare the biggest daily loss in six months and allow the US Dollar Index (DXY) to jump back towards the 20-year high marked the previous day. It’s worth noting that the S&P 500 Futures print mild gains while struggling to keep the bounce off a 21-month low of late.

Looking forward, the NZD/USD traders need clear directions and hence headlines surrounding the economic slowdown and the final readings of the US Q2 Gross Domestic Product (GDP), expected to confirm -0.6% annualized figure, will be important to watch. If the US GDP number surprises to the upside, NZD/USD may have further declines to track.

Technical analysis

NZD/USD defends Wednesday’s upside break of the 0.5700 resistance confluence comprising the 100-HMA and a downward sloping trend line from September 13, now acting as immediate support. The pair’s further upside, however, needs to cross the latest swing high surrounding 0.5740 to recall the NZD/USD buyers. Following that, the September 22 swing low near 0.5800 will be in focus.

Additional important levels

Overview
Today last price 0.5692
Today Daily Change -0.0038
Today Daily Change % -0.66%
Today daily open 0.573
 
Trends
Daily SMA20 0.595
Daily SMA50 0.6137
Daily SMA100 0.6225
Daily SMA200 0.6485
 
Levels
Previous Daily High 0.5734
Previous Daily Low 0.5565
Previous Weekly High 0.6003
Previous Weekly Low 0.573
Previous Monthly High 0.647
Previous Monthly Low 0.6101
Daily Fibonacci 38.2% 0.5669
Daily Fibonacci 61.8% 0.563
Daily Pivot Point S1 0.5619
Daily Pivot Point S2 0.5507
Daily Pivot Point S3 0.545
Daily Pivot Point R1 0.5788
Daily Pivot Point R2 0.5845
Daily Pivot Point R3 0.5957

 

 

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