- Kiwi is among the worst performers of the day across the board.
- NZD/USD finds support above weekly lows and rebounds on the latest headlines regarding US-China talks.
The NZD/USD pair peaked during the Asian session at 0.6799 and then lost strength. It failed for the second time in two days to break above 0.6800 and turned to the downside. The slide accelerated after the beginning of the US session.
Recently the pair bottomed at 0.6747, slightly above Tuesday’s low. As of writing is moving away from the low and trades at 0.6760. Reports mentioning that US President Trump plans to announce a summit with Chinese President Xi Jinping, signaling that a trade deal has been agreed, boosted risk aversion.
So far the recovery from the lows in NZD/USD has been limited. The kiwi remains under pressure and trading close to the 0.6740/50 area. Also affected by lower commodity prices.
Another factor that contributes to the negative tone around the kiwi is the rally of AUD/NZD. The pair broke above 1.0500 for the first time in almost two months.
NZD/USD Short-term levels to watch
If the pair drops further, the next support is seen at 0.6735/40 (weekly low) followed by 0.6718 (February low) and 0.6705. On the upside, resistance levels might be located at 0.6770/75, 0.6800 and 0.6825/30.
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