NZD/USD – bearish move stalls near Thursday’s low

Offered tone around NZD/USD ran out of steam as prices neared Thursday’s low of 0.6951 levels, helping the spot recover slightly to 0.6973 levels.

Rejected at 50-DMA

The spot was rejected at 50-DMA level of 0.7009 earlier today following which a steady stream of offers push the spot to a session low of 0.6957. The uptick in treasury yields could have strengthened the bid tone around USD.

Meanwhile, markets expect RBNZ to cut rates in August and that is ensuring the upticks are met with offers. The spot remains at the mercy of action in the treasury yields ahead of the Wednesday’s Fed rate decision. New Zealand trade balance figures due tomorrow could influence the pair as well.

NZD/USD Technical Levels

A break below 0.6951 (Thursday’s low) would expose 0.6923 levels (61.8% of 0.6675-0.7325), under which a major support is seen at 0.6910 (38.2% of 0.6236-0.7326). On the other hand, a break above 0.7009 (50-DMA) would open doors for 0.7070 (23.6% of 0.6236-0.7326). A violation there could yield 0.71 handle.