NZD/USD trims a part of early gains to 4-week tops, eases to 0.6330 area


  • Trump’s decision to delay new tariffs on Chinese products provided an early lift.
  • Reviving safe-haven demand seemed to be the only factor weighing on the Kiwi.
  • Traders now look forward to the ECB decision/US CPI print for a fresh impetus.

The NZD/USD pair quickly retreated around 20-pips during the early European session, albeit has still managed to hold with modest daily gains around the 0.6430 region.
 
Having shown some resilience near the 0.6400 handle over the past two trading session, the pair caught some fresh bids on Thursday after the US President announced to delay a planned tariff hike on Chinese goods by two weeks. This comes on the back of China's offer to buy more US agricultural products and remained supportive of the early up-move.

Downside seems limited ahead of ECB/US CPI

Apart from encouraging trade-related developments, a modest US Dollar pullback from one-week tops further collaborated to the pair's intraday positive momentum to the highest since mid-August. However, reviving safe-haven demand, which tends to drive flows away from perceived riskier currencies - like the Kiwi, kept a lid on any further up-move.
 
Meanwhile, the downside is likely to remain limited, at least for the time being, as investors are likely to await a fresh catalyst from the latest ECB monetary policy decision. This coupled with the release of US consumer inflation figures might influence the USD price dynamics and produce some meaningful trading opportunities later this Thursday.
 
Hence, it will be prudent to wait for a sustained break below the 0.6400 round figure mark before confirming that the recent bullish trajectory has already run out of the steam and positioning for any meaningful corrective slide ahead of the highly anticipated FOMC policy meeting on September 17-18.

Technical levels to watch

NZD/USD

Overview
Today last price 0.6433
Today Daily Change 0.0021
Today Daily Change % 0.33
Today daily open 0.6412
 
Trends
Daily SMA20 0.6382
Daily SMA50 0.6521
Daily SMA100 0.6556
Daily SMA200 0.6676
Levels
Previous Daily High 0.644
Previous Daily Low 0.6407
Previous Weekly High 0.6444
Previous Weekly Low 0.6269
Previous Monthly High 0.659
Previous Monthly Low 0.6283
Daily Fibonacci 38.2% 0.6419
Daily Fibonacci 61.8% 0.6427
Daily Pivot Point S1 0.6399
Daily Pivot Point S2 0.6387
Daily Pivot Point S3 0.6367
Daily Pivot Point R1 0.6432
Daily Pivot Point R2 0.6452
Daily Pivot Point R3 0.6465

 

 

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