“¢ Dismal Chinese macro data-led early downtick turns out to be rather short-lived.
“¢ The USD remains supported by positive US bond yields and might cap strong gains.
“¢ Traders now eye today’s release of US monthly retail sales data for fresh impetus.
After an initial dip to 0.6785 area, the NZD/USD pair regained positive traction and was now seen building on Friday’s goodish bounce from the very important 200-day SMA.
With investors looking past Friday’s disappointment from the headline NFP print, the pair opened with a modest bearish gap at the start of a new trading week and was being weighed down by disappointing Chinese macro data released over the weekend.
The downtick, however, turned out to be short-lived, rather caught some fresh bids and the pair subsequently recovered over 30-pips from Asian session lows. The pair climbed to multi-day tops, around the 0.6820 region, albeit seemed to lack any strong follow-through.
Meanwhile, a goodish pickup in the US Treasury bond yields extended some support to the US Dollar and might turn out to be the only factors that might keep a lid on meaningful positive momentum/cap gains, at least for the time being.
Hence, it would be prudent to wait for a strong buying interest before confirming that the pair might have already bottomed out in the near-term and positioning for any further up-move as the focus now shifts to the release of the US monthly retail sales data.
Apart from this, a slew of other US macroeconomic releases – including the latest consumer inflation figures on Tuesday and durable goods orders data on Wednesday, might further collaborate towards determining the pair’s next leg of a directional move.
Technical levels to watch
NZD/USD
Overview:
Today Last Price: 0.6812
Today Daily change: 6 pips
Today Daily change %: 0.09%
Today Daily Open: 0.6806
Trends:
Daily SMA20: 0.682
Daily SMA50: 0.6801
Daily SMA100: 0.6777
Daily SMA200: 0.6745
Levels:
Previous Daily High: 0.6811
Previous Daily Low: 0.6746
Previous Weekly High: 0.6832
Previous Weekly Low: 0.6744
Previous Monthly High: 0.6943
Previous Monthly Low: 0.6719
Daily Fibonacci 38.2%: 0.6786
Daily Fibonacci 61.8%: 0.6771
Daily Pivot Point S1: 0.6764
Daily Pivot Point S2: 0.6723
Daily Pivot Point S3: 0.6699
Daily Pivot Point R1: 0.6829
Daily Pivot Point R2: 0.6853
Daily Pivot Point R3: 0.6894