- Kiwi maintains limited recovery but shows signs of stabilization.
- The dollar falls due to bond stability and corrects down.
- Ahead: ADP employment data and Biden stimulus plan presentation.
NZD / USD is rising modestly on Wednesday and is trading just below 0.7000, after having bottomed out in European hours at 0.6962. The rise to 0.6999 occurred before a downward correction of the dollar in the market after having risen on Tuesday.
The recovery from the four-month low to which the NZD / USD fell last week appears limited. On the positive side for the kiwi, it remains with some stability, avoiding further falls.
The focus continues to be on the bond market where the rise in interest rates is the factor supporting the dollar rally. Looking ahead to the next few hours, the economic calendar shows the US ADP employment report as relevant events, where the Chicago PMI and pending home sales data will also be published. In addition, President Biden will announce an infrastructure plan that would be financed with an increase in corporate taxes.
From a technical point of view, NZD / USD bias remains bearish. The current consolidation, if confirmed below 0.6965 would point to a retest of the month’s lows, while if it managed to stay above 0.7015, the kiwi could extend the recovery.
Technical levels
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