- The NZD/USD plunged to a daily low of 0.5930, down by 0.50%.
- China reported mixed economic figures during the Asian session.
- A strong US Dollar contributed to the downside.
The NZD/USD saw downward movements in Tuesday’s session, declining to 0.5930 with a daily loss of 0.50%. On the data front, China reported Trade Balance data while the US Dollar recovering ground is what pushed the pair downwards.
In line with that, after the US DXY Index closed a 1.40% weekly decline last Friday, the Greenback is gaining some traction driven by a cautious market mood and US yields recovering. In addition, markets are awaiting fresh catalysts to continue placing their bets on the next Federal Reserve (Fed) decisions and the focus is set on next week’s Consumer Price Index (CPI) figures from the US from October.
Ahead of Powell’s speech on Wednesday, several Fed officials were on the wires on Tuesday but didn’t provide any new insights on the bank’s plans for the next monetary policy decisions.
On the other hand, China, a big trade partner of New Zealand, reported that Exports declined by more than 6% (YoY) in October, while Imports surged by 3% (YoY), but the data failed to trigger any movements on the Kiwi.
NZD/USD Levels to watch
The NZD/USD suggests a neutral to bearish technical outlook on the daily chart as bullish momentum wanes. The Relative Strength Index (RSI) points downwards above its midline, while the Moving Average Convergence (MACD) prints decreasing green bars. Additionally, the pair is above the 20-day Simple Moving Average (SMA), below the 100-day SMA, but above the 200-day SMA, implying that the bears remain in control on a broader scale.
Supports: 0.5915, 0.5900, 0.5880 (20-day SMA)
Resistances: 0.5960,0.6000 (100-day SMA), 0.6030.