NZD/USD chart - Trading View
Spot Analysis:
NZD/USD was trading largely unchanged on the day at 0.70 at around 10:40 GMT
Previous Week's High/ Low: 0.7088/ 0.6952
Previous Session's High/ Low: 0.7010/ 0.6968
Fundamental Overview:
Ongoing covid concerns weigh on market sentiment, denting the antipodeans.
Speculations of earlier than expected stimulus withdrawal at the U.S. Federal Reserve strengthen the U.S. dollar, keeps upside in the pair limited.
An upbeat U.S. jobs report and inflationary pressure which stoke earlier Fed taper expectations push UST yields to three-week highs.
Focus also on the monthly U.S. personal consumption report due at 1230 GMT that could influence the Fed's timeline to taper monetary support.
USD could get a further boost from an upbeat inflation reading, adding to expectations of policy tightening.
Technical Analysis:
- NZD/USD upside rejected at daily cloud and 110-EMA resistance
- Death Cross (bearish 50-DMA crossover on 200-DMA) on the daily charts keeps bias bearish
- Stochs and RSI are now biased lower, 5-DMA has turned and caps upside
- GMMA indicator shows major trend is bearish, while minor trend is neutral
Major Support and Resistance Levels:
Support - 0.6957 (55-week EMA), Resistance - 0.7036 (55-EMA)
Summary: NZD/USD trades with a bearish technical bias. U.S. dollar strength and risk-off market sentiment to further weigh on the pair. Focus on U.S. inflation data for impetus.
