NZD/USD erases majority of daily gains, trades below 0.68 ahead of RBNZ report
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NZD/USD erases majority of daily gains, trades below 0.68 ahead of RBNZ report

  • NZD/USD fails to preserve bullish momentum.
  • USD strength in NA session weighs on the pair.
  • Coming up: Speeches by Fed’s Evans, Bostic, Geroge and RBNZ’s Financial Stability Report.

The NZD/USD pair rose to a daily top of 0.6811 earlier today but struggled to push higher as the broad-based USD strength witnessed in the second half of the day dragged the pair back below the 0.68 mark. As of writing, the pair was trading at 0.6775, adding only 5 pips on a daily basis.

Hopes of the U.S. and China coming to terms on trade at the G20 summit later this week boosted the demand for kiwi amid the trade between New Zealand and China. However, cautious remarks from Chinese officials later in the day reminded the markets that trade negotiations are likely to be tough in Buenos Aires. Meanwhile, the data from New Zealand on Tuesday showed that the trade deficit rose to $5.79 billion on a yearly basis in October from $5.33 billion.

On the other hand, some hawkish remarks from Fed’s Vice Chairman Clarita and an upbeat consumer sentiment from the Conference Board helped the greenback outperform its rivals in the second half of the day. The US Dollar Index rose to its highest level in two weeks at 97.48 and was last seen up 0.4% on the day at 97.45.

Later in the day, FOMC members Bostic, Evans, and George will be delivering speeches. In the early hours of the Asian session, the RBNZ’s Financial Stability Report will be looked upon for fresh impetus.

Technical levels to consider

The pair could face the first support at 0.6750 (daily low/Nov. 27 low) ahead of 0.6700 (Nov. 12 low) and 0.6630 (100-DMA/50-DMA). On the upside, resistances are located at 0.6790 (200-DMA), 0.6835 (Nov. 22 high) and 0.6880 (Nov. 16 high).

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