• NZD/USD kick starts the key week around Friday’s close, keeps two-week downtrend.
  • New cases in Waikato, headlines concerning China and Evergrande join tapering tantrums to back the bears.
  • Bank holidays in China and Japan could join light calendar to restrict intraday moves, risk catalysts are important for fresh impulse.

NZD/USD begins the key week with the same old sour tone around 0.7035, after declining for the last two weeks.

Fresh COVID-19 infections outside Auckland adds to the downside pressure on the quote while the cautious mood ahead of the US Federal Reserve (Fed) monetary policy meeting and Sino-American tussles, not to forget Evergrande, already weighs on the quote. However, a banking holiday in China and a lack of major data/events at home seem to restrict the Kiwi pair’s immediate moves.

During the weekend, Waikato registers an uptick in covid infections outside New Zealand’s COVID-19 epicenter Auckland. The Pacific nation was up for easing the virus-led emergency alert level for Auckland from currently the highest of 04 to 03 from September 22. However, the latest virus outbreak renews chatters over heightened activity restrictions in Waikato.

Previously, firmer US Retail Sales and softer-than-expected Michigan Consumer Sentiment Index join softer US inflation data to confuse markets over the Fed’s next moves. Before the blackout for policymakers, most of them were pushing for the tapering despite the recent softening of the jobs report.

Read: Fed Preview: Three ways in which Powell could down the dollar, and none is the dot-plot

Elsewhere, the signing of a defense deal by the UK, Australia and the US indirectly teases China and escalates the tension between the western friends and Beijing, which in turn should weigh on the NZD/USD prices due to fears relating to the main customers. Further, China’s Evergrande is flashing red signals for not only domestic markets but to the global real estate developers and the Kiwi pair as well.

Amid these plays, Wall Street closed in red and the US 10-year Treasury yields were firmer by the end of Friday.

Moving on, a bank holiday in China and Japan should restrict intraday moves of the NZD/USD pair. On the same line is an absence of any major data/events at home, which in turn highlights risk catalysts for fresh directions.

Technical analysis

Unless regaining 100-DMA around 0.7075, NZD/USD remains vulnerable to drop towards 50-DMA near 0.7010.

Additional important levels

Overview
Today last price 0.7035
Today Daily Change -0.0006
Today Daily Change % -0.09%
Today daily open 0.7041
 
Trends
Daily SMA20 0.7057
Daily SMA50 0.7009
Daily SMA100 0.7074
Daily SMA200 0.7117
 
Levels
Previous Daily High 0.7088
Previous Daily Low 0.7025
Previous Weekly High 0.7151
Previous Weekly Low 0.7025
Previous Monthly High 0.7089
Previous Monthly Low 0.6805
Daily Fibonacci 38.2% 0.7049
Daily Fibonacci 61.8% 0.7064
Daily Pivot Point S1 0.7015
Daily Pivot Point S2 0.6988
Daily Pivot Point S3 0.6952
Daily Pivot Point R1 0.7078
Daily Pivot Point R2 0.7114
Daily Pivot Point R3 0.7141

 

 

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Feed news Join Telegram

Recommended content


Recommended content

Editors’ Picks

EUR/USD stays below 0.9800 after US inflation data

EUR/USD stays below 0.9800 after US inflation data

EUR/USD continues to trade in negative territory below 0.9800 in the American session on Friday. The data from the US showed that the annual PCE inflation declined to 6.2% in August but the stronger-than-expected core reading didn't allow the pair to gain traction.

EUR/USD News

GBP/USD rebounds from daily lows, reclaims 1.1100

GBP/USD rebounds from daily lows, reclaims 1.1100

GBP/USD fell to a fresh daily low below 1.1030 but managed to reverse its direction and climbed above 1.1100 during the American trading hours on Friday. The pair remains on track to snap a two-week losing streak despite having suffered heavy losses earlier in the week.

GBP/USD News

Gold extends daily rally beyond $1,670

Gold extends daily rally beyond $1,670

Gold preserved its bullish momentum and rose above $1,670 after the mixed inflation data from the US on Friday. The benchmark 10-year yield is down more than 2% as markets look to wrap up the third quarter, fueling XAU/USD's daily rally. 

Gold News

Shiba Eternity download day the biggest bullish catalyst in SHIB history?

Shiba Eternity download day the biggest bullish catalyst in SHIB history?

Shytoshi Kusama, the project lead for Shiba Inu, has dropped a teaser about Shiba Eternity games for the SHIB community. Proponents expect the launch of the collectible card game to be a bullish catalyst for Shiba Inu price. 

Read more

SPDR S&P 500 ETF Trust (SPY) Forecast: We are teetering on the brink

SPDR S&P 500 ETF Trust (SPY) Forecast: We are teetering on the brink

Equity markets remain at the precipice of a technical collapse, which we examine in the weekly long-term chart below. The overall picture remains one of nervousness ahead of the upcoming Q3 earnings season.

Read more

Forex MAJORS

Cryptocurrencies

Signatures