NZDUSD remains depressed below 0.7050, US dollar rebounds


  • NZD/USD moves cautiously in the initial Asian trading hours. 
  • US dollar recovers from early losses and stays above 91.80.
  • Kiwi gains support from improved risk appetite, RBNZ may cease QE bond purchase.

NZD/USD treads water on Tuesday in the early Asian trading session. The pair recovers part of its previous day’s losses.

At the time of writing, the NZD/USD pair is trading at 0.7048, up 0.16% for the day.

The rebound in the US Dollar Index (DXY) from the lower levels keeps gains limited for  NZD/USD.

The US Treasury yields trades below 1.5% as investors continue to digest sharp increases in the Personal Consumption Expenditure Index (PCE), Fed’s key inflation indicator. The PCE jumped 3.4% in May compared to the previous year.

On the other hand, Kiwi gained as risk sentiment improved after a breakthrough in infrastructure deal talks in Washington in the earlier week.

Meanwhile, as per Westpac's Chief Economist Michael Gordon, New ealnd’s housing market will cool down significantly over the coming month in the next 12 months due to change in tax structures.

In addition to that, the Bank of New Zealand said that New Zealand’s central bank might end its QE easing program in the coming months as it prepares to raise interest rates. This, in turn, provides lower ground to the kiwi.

It is worth noting that S&P 500 Futures were trading at 4,281 with 0.23% gains.

As for now, the dynamics around the US dollar continue to influence the pair’s performance in the absence of any major fundamental catalyst.

NZD/USD additional levels

NZD/USD

Overview
Today last price 0.7041
Today Daily Change -0.0034
Today Daily Change % -0.48
Today daily open 0.7075
 
Trends
Daily SMA20 0.7126
Daily SMA50 0.7181
Daily SMA100 0.7169
Daily SMA200 0.7048
 
Levels
Previous Daily High 0.7096
Previous Daily Low 0.7043
Previous Weekly High 0.7096
Previous Weekly Low 0.6935
Previous Monthly High 0.7317
Previous Monthly Low 0.7115
Daily Fibonacci 38.2% 0.7076
Daily Fibonacci 61.8% 0.7063
Daily Pivot Point S1 0.7046
Daily Pivot Point S2 0.7018
Daily Pivot Point S3 0.6993
Daily Pivot Point R1 0.7099
Daily Pivot Point R2 0.7124
Daily Pivot Point R3 0.7153

 

 

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