NZD/USD remains poised to extend losses beyond 0.7000 on USD gains

NZD/USD continues with the previous week’s selling pressure on Monday.
US Dollar Index remains steady near 93.0 on stronger NFP report.
Upbeat Chinese Trade data and interest rate hike expectations keep New Zealand’s dollar grounded.

Rekha Chauhan Independent Analyst

NZD/USD extends the previous session's downside momentum in the Asian session on the first day of the fresh trading week.

The pair witnessed heavy selling pressure in the American session and retreated further from daily highs, the levels just below the 0.7100 mark, touched earlier in the previous week.

The buying pressure in the US Dollar Index (DXY), which measures the greenback performance against its six major rivals, drags NZD/USD toward the lower levels. The DXY trades steady above 92.70 amid a rise in US Treasury yields.

The yield on the benchmark 10-year Treasury bonds scaled up to 1.30% on better than expected unemployment data, which fuels the economic growth prospects despite the threat of rising delta strain.

The US economy added 943k jobs in July, beating the market expectations of 870k. Most of the jobs were created in the service sector, which was the hardest hit during the COVID-19 pandemic.

Meanwhile, US Senate moved gradually toward formalizing a $1 trillion bipartisan infrastructure bill. This also added to the optimism surrounding the greenback.

In addition to that, the increasing corona cases in the Asia-Pacific region underpins the demand of the US dollar on the back of its global safe-haven asset.

On the other hand, Kiwi was able to hold near 0.7000 on better Chinese trade balance data, which instil faith in the pace of recovery in its largest trade partner.

Investors are anticipating the rate hike from the Reserve Bank of New Zealand( RBNZ) at its August 18 meeting.

As for now, all eyes are on Chinese CPI data to gauge the market sentiment.

NZD/USD additional levels

NZD/USD

Overview
Today last price	0.7012
Today Daily Change	0.0003
Today Daily Change %	0.04
Today daily open	0.7009

Trends
Daily SMA20	0.6985
Daily SMA50	0.7044
Daily SMA100	0.7096
Daily SMA200	0.7103

Levels
Previous Daily High	0.7063
Previous Daily Low	0.7001
Previous Weekly High	0.7089
Previous Weekly Low	0.6952
Previous Monthly High	0.7106
Previous Monthly Low	0.6881
Daily Fibonacci 38.2%	0.7025
Daily Fibonacci 61.8%	0.7039
Daily Pivot Point S1	0.6986
Daily Pivot Point S2	0.6962
Daily Pivot Point S3	0.6924
Daily Pivot Point R1	0.7048
Daily Pivot Point R2	0.7086
Daily Pivot Point R3	0.711

Author

Rekha Chauhan

Independent Analyst

Rekha Chauhan has been working as a content writer and research analyst in the forex and equity market domain for over two years.

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