FxWirePro: NZD/USD Daily Outlook

Chart - Courtesy Trading View 

NZD/USD was trading 0.49% higher on the day at 0.6244 at around 10:00 GMT.

A rebound in the positive market sentiment has underpinned the risk-perceived currencies.

Also, some signs of exhaustion were seen in the US dollar index DXY, as clouds of uncertain Fed policy loom again.

On the data front, US PPI matched 0.8% MoM forecasts, also easing to 10.8% YoY figures versus 10.9% expected and prior readouts. 

Further, core PPI (ex Food & Energy), dropped below 8.6% YoY forecasts to 8.3%, data released on Tuesday showed.

The pair has edged higher from 23-month lows at 0.6196. However, recovery attempts lack traction. 

Technical indicators are supporting further downside in the pair. Momentum with the bears, volatility is high, scope for more weakness. 

Support levels - 0.6198 (Lower W BB), 0.5920 (May 2020 low)

Resistance levels - 0.6290 (5-DMA), 0.6403 (21-EMA)

Summary: NZD/USD trades with a bearish bias. Recovery attempts lack traction. Resumption of weakness will see fresh multi-year lows.