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

 

 

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