NZD/USD sinks in tandem with Oil, near 0.6750

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Nov 2, 2015.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    FXStreet (Mumbai) - Heavy selling was seen in the NZD/USD pair in the mid-European session triggered by a sell-off witnessed across the commodities space, especially oil prices.

    NZD/USD hovers around 20-DMA

    Currently, the NZD/USD pair trades -0.46% lower at 0.6749, recovering from session lows struck at 0.6734 earlier on the day. The post-FOMC recovery in the NZD/UD pair meets fresh supply just below 0.68 barrier for the second straight session and now remains relentlessly offered, tracking weakness in oil prices.

    The US benchmark, WTI, tumbles over -1.70% to $ 45.75 while the European benchmark, Brent drops -1.50% to $ 48.80. The oil prices dropped sharply lower in the European session after Russia reported record high oil output in October. Moreover, the recent weak China data also added to the weakness in the black gold.

    Later in the day, the Kiwi will remain pressured on the back of recovery seen in the US dollar ahead of the US ISM manufacturing PMI results.

    NZD/USD Levels to consider

    To the upside, the next resistance is located at 0.6786/97 (today’s high + Oct 30 High), above which it could extend gains to 0.6819 (Oct 27 High) levels. To the downside immediate support might be located at 0.6733 (1h 100-SMA) below that 0.6683 (Oct 30 Low).
    For more information, read our latest forex news.

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