- The kiwi fails at 0.7195 and returns to the support area at 0.7150.
- The US dollar appreciates further on a risk-on session.
- NZD/USD's upside momentum loses vigour – UOB.
The New Zealand dollar has given away previous gains after pulling back from 0.7195 on Tuesday, to test support at 0.7150. The pair has been moving without a clear direction in a choppy trading session, ahead of key central bank meetings this week.
The US dollar picks up on a risk-on session
The kiwi has been unable to take advantage of moderately positive market sentiment. Stock markets have posted gains on Tuesday on the back of better than expected quarterly earnings reports by UPS and General Electric.
The US Dollar Index has pared losses on Tuesday after a soft opening, extending Monday’s rebound from 93.45, to session highs at 94.00.
Better than expected US new home sales, which surged 14% in September to reach six-month highs with 800,000 units sold, plus the unexpected improvement in US consumer sentiment and the solid increase on the Richmond Fed Manufacturing Index might have offered a fresh boost to the USD during the American trading time.
Major currencies, however, have remained within previous levels, with the investors awaiting key monetary policy decisions by the ECB, BoJ and BoC, due to be released later this week, which might set the near-term direction for FX markets.
NZD/USD’s upside momentum loses vigor – UOB
The FX analysis team at UOB warns that the NZD is losing upside traction: “As highlighted, upward momentum is beginning to wane and a break of 0.7125 (no change in ‘strong support’ level) would indicate that the NZD strength that started more than a week ago has run its course. In order to rejuvenate the flagging momentum, NZD has to move and stay above 0.7180 within these 1 to 2 days, or a break of 0.7125 would not be surprising.”
Technical levels to watch
|Today last price||0.7161|
|Today Daily Change||0.0001|
|Today Daily Change %||0.01|
|Today daily open||0.716|
|Previous Daily High||0.7179|
|Previous Daily Low||0.713|
|Previous Weekly High||0.7219|
|Previous Weekly Low||0.7049|
|Previous Monthly High||0.7171|
|Previous Monthly Low||0.6859|
|Daily Fibonacci 38.2%||0.716|
|Daily Fibonacci 61.8%||0.7149|
|Daily Pivot Point S1||0.7134|
|Daily Pivot Point S2||0.7107|
|Daily Pivot Point S3||0.7085|
|Daily Pivot Point R1||0.7183|
|Daily Pivot Point R2||0.7205|
|Daily Pivot Point R3||0.7232|
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.