NZD/USD sticks to modest gains above 0.73

Eren Sengezer FXStreet

The NZD/USD pair is moving in a tight 30 pip range on Monday with the daily high at 0.7335 and the low at 0.7305. As of writing, the pair was trading at 0.7320, gaining 0.15% on the day.

Amid a lack of fundamental catalysts and an empty economic calendar, the pair is struggling to find a short-term direction. Although a short-winded greenback sell-off in the early NA session allowed the pair to gain some traction, the upsurge failed to sustain as the falling crude oil prices made it difficult for the commodity-sensitive kiwi to find demand. At the moment, the US Dollar Index was at 93, losing 0.37% on the day while the barrel of West Texas Intermediate was losing $1.10, or 2.25%, to trade at $47.55.

The pair is poised to continue to move sideways on Tuesday as well as investors are likely to remain on sidelines ahead of the Jackson Hole Symposium later this week. Moreover, the calendar won't be offering any noteworthy data from New Zealand either.

Technical outlook

The RSI on the daily graph, which is moving horizontally near the 50 handle, is supporting the view of a neutral near-term outlook. The pair could face the first hurdle at 0.7350 (50-DMA) followed by 0.7415 (Aug. 7 high) and 0.7500 (psychological level). On the downside, supports are located at 0.7295/0.7300 (10-DMA/psychological level), 0.7225 (Aug. 16 low) and 0.7190 (100-DMA).

NZD: Speculators to think twice about being long kiwi – ING

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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