NZD/USD trades with modest losses, just above 0.6500 handle


  • NZD/USD comes under some selling pressure amid trade uncertainty.
  • The downside remains cushioned amid a subdued USD price action.

The NZD/USD pair refreshed daily lows, around the 0.6500 handle in the last hour, and has now erased a major part of the previous session's positive move to four-month tops.

The pair failed to capitalize on its goodish positive move witnessed over the past two trading session and came under some selling pressure on Wednesday in reaction to a further escalation in tensions between the world's two largest economies.

Focus remains on trade developments

It is worth recalling that the US President Donald Trump on Tuesday indicated that a trade deal with China might have to wait until late 2020. Adding to this, the US Congress overwhelmingly approved a bill condemning China’s mass detention of ethnic Muslims in the western region of Xinjiang.

The latest developments came after Trump last week signed a bill supporting Hong Kong’s pro-democracy protesters. This coupled with China's warning to retaliate was seen as another setback to the trade negotiations, which weighed on the global risk sentiment and exerted some pressure on perceived riskier currencies – like the kiwi.

Meanwhile, comments by China's foreign ministry did little to ease market concerns, rather contributed to the latest leg of a slide over the past hour or so. China's foreign ministry said that the US will pay the price over Hong Kong and Xinjiang bills and they will not set any timeline or deadline for a trade deal with the US.

The downtick, however, remained limited, at least for the time being, and was being cushioned by a mildly weaker tone surrounding the US dollar. Against the backdrop of the recent dismal US macro data, some renewed weakness in the US Treasury bond yields held the USD bulls on the defensive and seemed to be the only factor lending some support.

Moving ahead, market participants now look forward to the US economic docket, highlighting the release of ADP report on private-sector employment and ISM Non-Manufacturing PMI, which has the potential to influence the USD price dynamics and might produce some short-term trading opportunities later during the early North-American session.

Technical levels to watch

NZD/USD

Overview
Today last price 0.6509
Today Daily Change -0.0009
Today Daily Change % -0.14
Today daily open 0.6518
 
Trends
Daily SMA20 0.6406
Daily SMA50 0.6364
Daily SMA100 0.6413
Daily SMA200 0.6545
 
Levels
Previous Daily High 0.6534
Previous Daily Low 0.6493
Previous Weekly High 0.6439
Previous Weekly Low 0.6394
Previous Monthly High 0.6466
Previous Monthly Low 0.6321
Daily Fibonacci 38.2% 0.6518
Daily Fibonacci 61.8% 0.6509
Daily Pivot Point S1 0.6496
Daily Pivot Point S2 0.6474
Daily Pivot Point S3 0.6455
Daily Pivot Point R1 0.6537
Daily Pivot Point R2 0.6556
Daily Pivot Point R3 0.6578

 

 

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