NZD / USD remains negative below 0.7200 level, decline appears limited

Get real time updates directly on you device, subscribe now.

  • Concerns about the increase in COVID-19 cases weigh on the NZD of highest perceived risk.
  • The USD remains weak near multi-week lows and helps limit NZD / USD losses.
  • Diminishing expectations of a Fed rate hike and falling US bond yields weigh on the USD.

The pair NZD / USD moves lower during the European on Thursday, staying close to daily lows around the 0.7180 level.

The pair has seen some selling during the first half of trading action on Thursday and has returned some of the positive movement from the previous day, led by New Zealand consumer inflation figures. Renewed fears about another dangerous wave of coronavirus infections in some countries have continued to weigh on investor sentiment.. This, in turn, has been seen as a key factor that has kept monetary flows away from the NZD from higher perceived risk.

However, the decline has been supported, at least for now, amid the prevailing bearish sentiment around the US dollar. Expectations that the Fed will keep interest rates near zero for a longer period have kept the USD under pressure near multi-week lows. Apart of this, a further downward movement in US Treasury yields has weighed further on the US dollar and it has helped limit losses on the NZD / USD pair.

Even from a technical perspective, acceptance above the 100-day SMA and some lower buying favors bulls. With that said, it will still be prudent to wait for some subsequent purchases above the weekly highs, around the 0.7230 region, before positioning for any further bullish movement. The NZD / USD pair could accelerate momentum and aim to regain the round 0.7300 level.

Market participants are now awaiting the US economic calendar, which features the release of initial weekly jobless claims. This, along with US bond yields, will influence USD price dynamics. Investors will follow the signals of the broader market risk sentiment to seize some short-term opportunities.

NZD / USD technical levels


Get real time updates directly on you device, subscribe now.

Leave A Reply

Your email address will not be published.