- NZD/USD refreshes weekly bottom as market sentiment sours.
- Middle East tension, mixed vaccine updates join pre-US CPI cautious to portray risk-off mood amid light calendar in Asia.
NZD/USD remains depressed for the third consecutive day, down 0.30% to 0.7250 by the press time of early Wednesday. The kiwi pair justifies the market’s risk-off mood ahead of the key US Consumer Price Index (CPI) amid a lack of major Asian economics.
In addition to the reflation fears ahead of the US CPI for April, expected 3.6% versus 2.6% YoY prior, geopolitical tensions in the Middle East and mixed updates over the coronavirus (COVID-19) vaccines also back the risk-aversion.
Geopolitical tensions between Israel and Palestine escalate near the Gaza strip, causing around 30 deaths. The move defies the United Nations (UN) early day push to settle the differences.
Elsewhere, China’s sinovac is termed “highly effective in the real world study” by Bloomberg. On the contrary, the US Centers for Disease Control and Prevention (CDC) found 23 blood clotting issues linked to the Johnson & Johnson inoculation.
Against this backdrop, S&P 500 Futures drop for the third day in a row, down 0.24% by the press time, whereas the US 10-year Treasury yields struggle for a clear direction after gaining two basis points (bps) to 1.62% the previous day.
It should be noted that the NZD/USD moves ignore the Australian budget that shows the government’s readiness to keep the deficit high while supporting the economic recovery.
Moving on, the risk-off mood may continue exerting downside pressure on the NZD/USD prices ahead of the key US data. However, bulls may return if the American inflation offers a positive surprise by signaling the anticipated jump in prices as temporary.
A daily closing beyond 0.7305-10 area, comprising highs marked since March, becomes necessary for the NZD/USD bull’s return.
Additioal important levels
|Today last price||0.725|
|Today Daily Change||-22 pips|
|Today Daily Change %||-0.30%|
|Today daily open||0.7272|
|Previous Daily High||0.729|
|Previous Daily Low||0.7251|
|Previous Weekly High||0.7301|
|Previous Weekly Low||0.7115|
|Previous Monthly High||0.7287|
|Previous Monthly Low||0.6945|
|Daily Fibonacci 38.2%||0.7266|
|Daily Fibonacci 61.8%||0.7275|
|Daily Pivot Point S1||0.7252|
|Daily Pivot Point S2||0.7232|
|Daily Pivot Point S3||0.7213|
|Daily Pivot Point R1||0.7291|
|Daily Pivot Point R2||0.731|
|Daily Pivot Point R3||0.733|
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