NZD/USD weakens farther below 0.6300 handle, back closer to multi-year lows


  • The pair remains under some heavy selling pressure for the third straight day.
  • Trade pessimism/cautious mood further collaborated to the pair’s weaker tone.
  • The ongoing slide seemed rather unaffected by some renewed USD selling bias.

The NZD/USD pair added to its recent losses and has moved well within the striking distance of multi-year lows, set earlier this September.
 
The pair extended its recent sharp pullback from mid-0.6800s, or near one-month tops, and remained under some heavy selling pressure for the third consecutive session on Friday - also marking its seventh day of fall in the previous eight.

Trade pessimism offset weaker USD

The market reaction to Thursday's upbeat release of New-Zealand second-quarter GDP growth figures turned out to be rather short-lived, with renewed trade pessimism exerting some follow-through downward pressure on the Kiwi.
 
The overnight contradicting statement by two White House advisers, followed by China’s warning to the US for its intervention in the Hong Kong issue raised doubts over any breakthrough from the upcoming talks in early-October.
 
This coupled with the prevalent cautious mood, amid a further escalation of geopolitical tensions in the Middle East, further collaborated towards driving flows away from perceived riskier currencies - like the New-Zealand Dollar.
 
Meanwhile, the ongoing downward trajectory seemed rather unaffected by some renewed selling bias around the US Dollar, which remained on the defensive on the back of sliding US Treasury bond yields and despite a hawkish rate cut by the Fed.
 
It will now be interesting to see if the pair is able to attract any buying interest at lower levels or the ongoing downfall marks the resumption of the prior/well-established bearish trend amid absent market-moving economic releases from the US.
 
Later during the US session, a scheduled speech by Boston Fed President Eric Rosengren might influence the USD price dynamics and contribute towards providing some impetus on the last trading day of the week.

Technical levels to watch

NZD/USD

Overview
Today last price 0.6276
Today Daily Change -0.0025
Today Daily Change % -0.40
Today daily open 0.6301
 
Trends
Daily SMA20 0.6365
Daily SMA50 0.6486
Daily SMA100 0.6539
Daily SMA200 0.666
 
Levels
Previous Daily High 0.6334
Previous Daily Low 0.6298
Previous Weekly High 0.6452
Previous Weekly Low 0.6372
Previous Monthly High 0.659
Previous Monthly Low 0.6283
Daily Fibonacci 38.2% 0.6312
Daily Fibonacci 61.8% 0.632
Daily Pivot Point S1 0.6288
Daily Pivot Point S2 0.6275
Daily Pivot Point S3 0.6252
Daily Pivot Point R1 0.6324
Daily Pivot Point R2 0.6347
Daily Pivot Point R3 0.636

 

 

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

FXStreet Trading Signals now available!

Access to real-time signals, community and guidance now!

Latest Forex News


Latest Forex News

Editors’ Picks

EUR/USD defends gains above 1.1300 amid broad dollar recovery

EUR/USD defends gains above 1.1300 amid a broad-based US dollar recovery. The shared currency remains at the mercy of the broader market sentiment as the data docket is light on Monday. COVID-19 stats in focus. 

EUR/USD News

GBP/USD batting to extend gains beyond 1.2600

Risk-on mood limits the dollar’s bullish potential. GBP/USD bounces from daily lows, but Brexit concerns weigh on Sterling. BOE Governor Bailey's speech awaited.

GBP/USD News

Gold sits near daily tops, just below $1810 level

A combination of supporting factors assisted gold to regain positive traction on Monday. Sustained USD selling remained supportive amid concerns about rising COVID-19 cases. The prevalent risk-on mood might turn out to be the only factor capping any strong gains.

Gold News

Dominance war to push Ethereum to $270

The Altcoin segment is still in full swing while the crypto board leaders, Bitcoin and Ethereum, remain stuck at the same levels as in recent weeks. The dispute for market share, or dominance in technical terms, remains at a point of maximum tension. 

Read more

WTI breaches $40 mark as talks of OPEC+ output cuts easing weigh

WTI (August futures on Nymex) extends Friday’s sell-off into the European trading this Monday, following a brief consolidation seen above $40 mark earlier in the Asian session.

Oil News

Forex MAJORS

Cryptocurrencies

Signatures