NZDUSD is limited below 0.5900 in a risk-off trading session

The New Zealand Dollar remains unable to return above 0.5900 during Wednesday’s US trading session, after having depreciated more than 1% on the day as market sentiment tanked.

Investors, cautious awaiting the outcome of the US elections

In the absence of relevant macroeconomic data, the focus is on the outcome of the US elections, with the investors reluctant to place any significant bet. The latest news has shown better-than-expected results for the democrats, although both parties are still in a tight race to control Congress.

Beyond that, the release of October’s US CPI data, due on Thursday is expected to provide further insight into the Federal Reserve’s next monetary policy decisions, and therefore, it might trigger significant US Dollar volatility.

NZD/USD: Broader negative outlook remains intact – Credit Suisse

In the long run, analysts at Credit Suisse maintain their bearish view on the pair, and point out to 0.5600 and below: “The recent recovery in our eyes still looks, for now at least, like a corrective countermove within the broader downtrend. Hence, our broader negative outlook stays intact, though with a move back below 0.5854 and then below 0.5600/5597 needed to turn the market on the path towards the YTD low 0.5510 and then the 2020 low at 0.5468.”

Technical levels to watch