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NZD/USD rally towards 0.6200 as dollar loses momentum

  • Dollar falls on London fix, although US yields remain at weekly highs.
  • DXY reverses and turns negative, erasing a 0.60% daily gain.
  • NZD/USD – Key support above 0.6150 holds.

The NZD/USD bounced back from near 0.6150 and rose to 0.6200, paring daily losses. The general decline in the US dollar boosted the pair.

The greenback weakened around the London fix, despite US yields hitting new daily highs. On Wall Street, stocks turned decisively positive and commodities erased losses. DXY moved from above 109.00 to 108.40.

US economic data showed a mixed Durable Goods Orders report on Wednesday, with the headline missing expectations, but with positive details. Another report revealed that existing home sales fell 1% in July to the lowest level in two years. A new estimate of second-quarter GDP, weekly jobless claims and the Kansas Fed manufacturing index will be released on Thursday.

New Zealand retail sales data will be released during the Asian session. Later on Thursday, the market will focus on the Jackson Hole symposium. Jerome Powell will speak on Friday.

Crucial support at 0.6150

NZD/USD bias continues to favor downside. Crucial support lies around 0.6150, which capped the upside for the past four days. A break lower would clear the way for more losses, targeting 0.6125 initially and then 0.6095.

To the upside, immediate resistance can be seen at 0.6205, followed by 0.6240.

Technical levels

NZD/USD

Panorama
Last Price Today 0.6179
Today’s Daily Change -0.0049
Today’s Daily Change % -0.79
Today’s Daily Opening 0.6228
Trends
20 Daily SMA 0.6294
50 Daily SMA 0.6256
100 Daily SMA 0.6395
200 Daily SMA 0.6594
levels
Previous Daily High 0.6245
Previous Daily Minimum 0.6159
Previous Maximum Weekly 0.6457
Previous Weekly Minimum 0.6165
Monthly Prior Maximum 0.633
Previous Monthly Minimum 0.6061
Daily Fibonacci 38.2% 0.6212
Daily Fibonacci 61.8% 0.6192
Daily Pivot Point S1 0.6176
Daily Pivot Point S2 0.6125
Daily Pivot Point S3 0.609
Daily Pivot Point R1 0.6262
Daily Pivot Point R2 0.6296
Daily Pivot Point R3 0.6348

Source: Fx Street

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