NZD/USD trades with modest losses near 0.7230 ahead of key US events


  • NZD/USD recovers modestly after sliding toward 0.7230 on Wednesday.
  • US Dollar Index erases large part of Tuesday's losses. 
  • US Durable Goods Orders data and FOMC policy announcements awaited. 

The NZD/USD pair posted its highest daily close in two weeks at 0.7237 on Tuesday but struggled to preserve its bullish momentum. After sliding to a daily low of 0.7214 during the early trading hours of the European session, the pair staged a technical correction and was last seen trading with small losses at 0.7232.

Focus shifts to FOMC

The renewed USD strength on Wednesday seems to have put NZD/USD under bearish pressure. A sharp decline witnessed in the EUR/USD pair after European Central Bank (ECB) policymaker Klass Knot said they had tools to counter further euro appreciation provided a boost to the greenback. At the moment, the US Dollar Index, which lost 0.24% on Tuesday, is up 0.23% at 90.37.

Later in the day, the Durable Goods Orders data from the US will be looked upon for fresh impetus. More importantly, the US Federal Reserve will announce its interest rate decision and publish the policy statement. 

Previewing the FOMC's January meeting, "we do not expect any major policy changes tonight after the Fed changed its QE forward guidance at the December meeting," said Danske Bank analysts. "We expect Fed Chair Powell will be asked about the tapering process on the back of the previous weeks' discussions."

Technical levels to watch for

NZD/USD

Overview
Today last price 0.7234
Today Daily Change -0.0008
Today Daily Change % -0.11
Today daily open 0.7242
 
Trends
Daily SMA20 0.7173
Daily SMA50 0.71
Daily SMA100 0.6889
Daily SMA200 0.6657
 
Levels
Previous Daily High 0.7248
Previous Daily Low 0.7167
Previous Weekly High 0.7226
Previous Weekly Low 0.7096
Previous Monthly High 0.7241
Previous Monthly Low 0.7002
Daily Fibonacci 38.2% 0.7217
Daily Fibonacci 61.8% 0.7198
Daily Pivot Point S1 0.719
Daily Pivot Point S2 0.7138
Daily Pivot Point S3 0.7109
Daily Pivot Point R1 0.7271
Daily Pivot Point R2 0.73
Daily Pivot Point R3 0.7352

 

 

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.

Feed news

Latest Forex News


Latest Forex News

Editors’ Picks

EUR/USD struggles around 1.21 amid sour market mood

EUR/USD has extended its falls and struggles around 1.21 as the risk-off mood and elevated US bond yields favor the dollar. President Biden's stimulus bill ran into a snag. The Fed's preferred inflation measure and end-of-month flows are eyed.

EUR/USD News

Gold melts below $1,750, lowest in 8 months amid high Treasury yields

Gold (XAU/USD) has been extending its downfall as elevated bond yields make the precious metal – which provides no returns – less attractive.

Gold news

S&P 500 Day Ahead Outlook: Inflation fears see bears back bashing

An ugly day for stock markets on Thursday as the dirty word inflation reared its head again. Just when you thought Powell had killed off the thought, it came back stronger in the sequel!

Read more

Bitcoin ready for bullish continuation as crypto bull cycle pauses

Bitcoin retest support at $45,000 after failing to break the resistance at $52,000. A break above the range between $48,000 and $49,500 will bring back a bullish impulse.

Read more

US Dollar Index remains firm around 90.60 post-data

The US Dollar Index (DXY), which gauges the buck vs. a basket of its main rivals, keeps the bid tone unchanged around 90.60 on Friday.

US Dollar Index News

Forex MAJORS

Cryptocurrencies

Signatures