NZD/USD submerged by risk-off tones, struggles to fly

NZD/USD pressured in broad dollar strength and risk-off tones.
RBA up next today, ears will be listening out for forecasts.

Ross J Burland FXStreet

NZD/USD has been attempting to recover from lost ground from the late April tops but the US dollar is back in vogue, dominating the FX matrix. At the time of writing, NZD/USD is trading at 0.6050 having travelled between a low of 0.6008 and a high of 0.6060.

The week started out with escalations over the Chinese and US trade feud as the US administration seeks to blame the COVID-19 pandemic on China's reckless handling of their own epidemic. In response to Mike Pompeo, Secretary of State, interview and accusations on ABC News reported on here: What you need to know as markets open: Pompeo and Trump ratcheted up US and China tensions, the Global Times (GT) wrote an editorial here: Pompeo's anti-China bluff strategy reveals all-or-nothing mentality to fool US voters – GT.

The news hit the commodity complex and created USD strength. "'Feel-good’ vibes yesterday (zero new COVID-19 cases, an RBNZ hint that the OCR wouldn’t be cut and RBNZ funding for the BFGS via the TLF) have been shrugged off and we’ve settled into a new 0.60/0.605 range ‘on the narrow’," analysts at ANZ Bank explained – "Kiwi has been tricky lately and this recent episode serves as a reminder that it’s a ‘risk-on’ currency," the analysts added.

RBA next in focus

Meanwhile, for the day ahead, the Reserve Bank of Australia will take centre stage. The focus will be on the economic outlook – more on that here: RBA Preview: Markets looking for forecasts, not action

NZD/USD levels

NZD/USD

Overview
Today last price	0.6048
Today Daily Change	-0.0014
Today Daily Change %	-0.23
Today daily open	0.6062

Trends
Daily SMA20	0.603
Daily SMA50	0.6058
Daily SMA100	0.6309
Daily SMA200	0.6355

Levels
Previous Daily High	0.6128
Previous Daily Low	0.6046
Previous Weekly High	0.6176
Previous Weekly Low	0.5991
Previous Monthly High	0.6176
Previous Monthly Low	0.5843
Daily Fibonacci 38.2%	0.6077
Daily Fibonacci 61.8%	0.6097
Daily Pivot Point S1	0.603
Daily Pivot Point S2	0.5997
Daily Pivot Point S3	0.5948
Daily Pivot Point R1	0.6112
Daily Pivot Point R2	0.6161
Daily Pivot Point R3	0.6194

Author

Ross J Burland

FXStreet

Ross J Burland, born in England, UK, is a sportsman at heart. He played Rugby and Judo for his county, Kent and the South East of England Rugby team.

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