- AUD/USD’s sharp fall weighs on NZD/USD on Tuesday.
- The US Dollar Index clings to daily gains near 95.50.
- Bi-weekly New Zealand GDT auction and FOMC Chairman Powell speech are up next.
The NZD/USD pair came under a renewed bearish pressure during the Asian trading hours and fell to its lowest level since September 19 at 0.6575. After finding support there, the pair staged a modest recovery into the NA session and was last seen trading at 0.6585, where it was still down 0.45% on a daily basis.
Earlier today, the AUD/USD pair fell sharply after the RBA in its monetary policy statement reiterated that interest rates were likely to remain at record-low levels for the foreseeable future and weighed on the strongly-correlated NZD/USD pair. Furthermore, the greenback continued to gather strength as investors look for a better alternative against the euro and the pound sterling amid the ongoing political uncertainties. The US Dollar, which rose all the way up to 95.74, was last seen up 0.3% on the day at 93.60.
Later in the session, the bi-weekly Global Dairy Trade action in New Zealand will be looked upon for fresh impetus. The last two auctions yielded declines in the GDT price index and a similar outcome today could drag the kiwi lower against its rivals. In the NA evening, FOMC Chairman will be delivering a speech and is expected touch on employment and inflation.
Technical levels to consider
On the downside, the pair could face the initial support at 0.6575 (daily low) ahead of 0.6535 (Sep. 17 low) and 0.6500 (psychological level/Sep.12 low). Resistances, on the other hand, are located at 0.6620 (50-DMA), 0.6695 (Sep. 26 low) and 0.6725 (100-DMA). Meanwhile, the RSI indicator on the daily chart stays below the 50 mark to suggest that sellers are still in control of the price action.
Share
