Categories: Markets

NZD/USD remains near the bottom and 0.6300 amid modest dollar strength

NZD/USD remains near the bottom and 0.6300 amid modest dollar strength
  • NZD/USD fails to hold on to its modest intraday gains on some dollar strength.
  • Bets that the Fed will continue to raise interest rates offer some support for the dollar.
  • Optimism about easing restrictions in China caps kiwi losses.

On Tuesday, the pair NZD/USD It lost strength near the 0.6355 zone and fell to the lower end of its daily range during the early hours of the European session. The pair is currently trading around the 0.6300 area, which if broken decisively will set the stage for an extension of Monday’s sharp pullback, which started from highs since mid-August.

The American dollar Gained a bit momentarily and tries to consolidate Monday’s strong rally move from 5+ month lows, which in turn acts as a headwind for NZD/USD. Against the backdrop of Friday’s upbeat US monthly jobs report, stronger US ISM Services PMI data on Monday is a sign that the economy remains resilient, despite rising the costs of the loans. This fueled speculation that the Federal Reserve could raise interest rates more than anticipated and is seen as a key factor acting as a tailwind for the dollar.

Market participants, however, seem convinced that the US central bank could slow its rate-raising cycle and have been pricing in a relatively minor 50 basis point hike in December. Aside from this, the latest optimism about the easing of COVID-19 restrictions in China keeps the safe-haven dollar at bay and helps limit the fall in the NZD/USD pair, at least for now. The fundamental undertone looks mixed at the moment.

The US economic calendar on Tuesday, with the release of the Trade Balance data, could do little to boost the NZD/USD pair. That being said, US Treasury yields, coupled with market risk sentiment, could influence USD price dynamics.

technical levels

NZD/USD

Overview
Last price today 0.6315
Today I change daily 0.0003
today’s daily variation 0.05
today’s daily opening 0.6312
Trends
daily SMA20 0.6173
daily SMA50 0.5899
daily SMA100 0.6029
daily SMA200 0.6288
levels
previous daily high 0.6444
previous daily low 0.6302
Previous Weekly High 0.6477
previous weekly low 0.6155
Previous Monthly High 0.6314
Previous monthly minimum 0.5741
Fibonacci daily 38.2 0.6356
Fibonacci 61.8% daily 0.639
Daily Pivot Point S1 0.6262
Daily Pivot Point S2 0.6211
Daily Pivot Point S3 0.612
Daily Pivot Point R1 0.6404
Daily Pivot Point R2 0.6495
Daily Pivot Point R3 0.6546

Source: Fx Street