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  • Broad USD strength on Monday drags the pair lower.
  • U.S. – China trade optimism helps NZD limit its losses.
  • RBNZ is scheduled to release its monetary policy statement on Wednesday.

The NZD/USD pair rebounded modestly in the early Asian session but lost its traction and turned negative on the day in the second half of the day. Toward the end of the NA session, the pair is trading at 0.6735, losing 0.15% on the day.

Hopes of the U.S. and China coming to a trade agreement ahead of March 1 deadline helped the kiwi stay relatively resilient against the buck especially when compared to major European currencies such as the euro and the GBP. Earlier today,  White House senior adviser Kellyanne Conway told Fox News that President Trump could meet Chinese President Xi “very soon” and added that sides were getting closer to a trade deal.

Nevertheless, the US Dollar Index’s impressive rally, which is now in its eighth day, didn’t allow the pair to move back into the positive territory. At the moment, the DXY is up 0.43% on the day at 97.06, looking to post its highest daily close of 2019.

Later his week, the RBNZ is scheduled to announce its interest rate decision and release the monetary policy statement. Previewing the event, “We expect the Bank to reiterate a steady approach. If the RBNZ were to deviate it would be to the dovish side. We wouldn’t be surprised if the previously implied tightening was delayed for up to six months with a nod to the increase in international risks,” the NAB Research team noted in a recently published report.

Key technical levels


       Today Last Price:  0.6735
       Today Daily change %:  -0.15%
       Today Daily Open:  0.6749
       Daily SMA20:  0.6813
       Daily SMA50:  0.6799
       Daily SMA100:  0.6724
       Daily SMA200:  0.6757
       Previous Daily High:  0.6767
       Previous Daily Low:  0.6729
       Previous Weekly High:  0.6907
       Previous Weekly Low:  0.6729
       Previous Monthly High:  0.694
       Previous Monthly Low:  0.6516
       Daily Fibonacci 38.2%:  0.6744
       Daily Fibonacci 61.8%:  0.6752
       Daily Pivot Point S1:  0.673
       Daily Pivot Point S2:  0.671
       Daily Pivot Point S3:  0.6692
       Daily Pivot Point R1:  0.6768
       Daily Pivot Point R2:  0.6786
       Daily Pivot Point R3:  0.6806