NZD/USD had been relatively stable through overnight sessions, recovering from 0.6908 European lows before the N.Korean/US news hit the wires that saw some volatility and pretty major risk-off moves kicking-in. NZD/USD traded between 0.6934 and 0.6913 around the London close and headline. Currently, NZD/USD is trading at 0.6921, with a high of 0.6937 and a low of 0.6906.
President Trump cancelled his summit with North Korea – ANZ
NZD/USD pulled itself up from the post Trump/Kim lows and climbed to 0.6934 before some late trade send the bulls packing again and the bird dropped to 0.6917, (stocks and commodities sliding). However, as analysts at ANZ noted, being neither a safe haven nor a geopolitical risk prox, there is little on the radar to move it today.
ANZ analyst’s outlook:
“The NZD is largely treading water right now and that looks like how it will close out the week. The kiwi has seen some reasonable underlying demand below 69 cents and the recent USD rally has run out of puff as yields struggle to push higher and geopolitical issues continue to linger,” the analysts explained.
NZD/USD levels
Support comes in at 0.6906, below the 10-D SMA at 0.6919, ( 0.6850 below there). To the upside, 0.6950 and 0.6980 mark key levels of interest, (21-D SMA 0.6969). The next upside key target beyond there is located at 0.7080. The NZD/USD has taken out the 200-month moving average resistance at 0.6980. However, weekly technicals remain bearish and RSIs are biased to the downside. Below 0.6850, 0.6780 comes as next downside target meeting the lows of mid-Nov 2017.
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