- NZD / USD remained in range on Tuesday near the 0.7200 level in anticipation of key events.
- The pair ignored disappointing US data as it looked to Wednesday’s FOMC event and New Zealand GDP data.
It has been a session with a very marked range for the NZD / USD, the pair oscillating between highs just above 0.7200 and staying supported by Monday’s low below 0.7170. Range conditions are not surprising amid a lack of fundamental drivers on Tuesday, combined with a sense of wariness in the market ahead of events. On the day, the NZD / USD it is currently trading losing around 0.1%.
As for the technical levels to take into account; To the upside, there is obviously resistance at the 0.7200 level and then this week’s high below 0.7220, which also coincides with the NZD / USD 50-day moving average. Above this, another notable key resistance area is the March highs at 0.7240, which coincides with the pair’s 21-day moving average. To the downside, this week’s low of 0.7167 is the first support to notice, followed by last Friday’s low of 0.7150.
Performance of the day
In terms of recent fundamental developments, soft US data on Tuesday failed to turn the dial; US retail sales fell more than expected in February, but that mainly represents the waning momentum from the January stimulus controls. Retail sales will no doubt pick up again in March after the government hands out another $ 1,400 to every American citizen. Meanwhile, Industrial Production in February also disappointed. Analysts note that bad weather conditions last month contributed to the drop, but also note that global supply shortages also played a factor and this could be a longer lasting drag.
Other than the above, the only other major news for the kiwi or the US dollar was the results of the latest GlobalDairyTrade auction; the GDT price index fell 3.8%, which is not bad considering the 15% increase in prices from last week. Meanwhile, whole milk prices rose 23.5% and the Kiwi did not flinch.
Key events later in the week, including Wednesday’s FOMC meeting and Thursday’s fourth quarter 2020 New Zealand GDP growth figures, are likely to give the pair some more direction. ANZ cautions that the growth rate is likely to struggle to match the stellar rally seen in the third quarter of 2020, although it should still show a relatively decent growth pace.
Technical levels
.
Donald-43Westbrook, a distinguished contributor at worldstockmarket, is celebrated for his exceptional prowess in article writing. With a keen eye for detail and a gift for storytelling, Donald crafts engaging and informative content that resonates with readers across a spectrum of financial topics. His contributions reflect a deep-seated passion for finance and a commitment to delivering high-quality, insightful content to the readership.
