- The US dollar recovers from lows during Yellen’s testimony.
- The NZD / USD with a bearish bias, points to the 0.7100 area.
The pair NZD / USD is again near weekly lows after touching at the beginning of the American session the level of 0.7133. The pair has turned lower and has reached a new daily low at 0.7101. At the time of writing, the pair is trading at 0.7110, around Monday’s close.
The pullback from the highs in the NZD / USD has occurred amid a modest recovery in the US dollar across the board and following a correction in Wall Street stock prices. The major stock indices are in positive territory but retreating from highs.
Market participants are listening to Secretary of the Treasury candidate Janet Yellen in the Senate. Yellen mentioned that considering that interest rates are at record lows, the smartest thing to do is go big..
The DXY index is down 0.28%, trading around 90.50, affected by risk appetite. The NZD is among the weakest currencies on Tuesday. The AUD / NZD cross rose to 1.0840, the highest level in three months.
From a technical perspective, the NZD / USD is still under pressure. The recovery from Monday’s low has been short-lived. So far this Tuesday, the pair has been able to stay above 0.7100. A break to the downside would open the door for additional losses. On the upside, the key level could be seen at 0.7150 / 55 (horizontal level and 20-period SMA on the 4-hour chart). A consolidation above this region should ease the downward pressure.
NZD / USD technical levels
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