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NZD/USD sold-off at 200-DMA, eyes Thursday’s low

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Dec 11, 2015.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

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    FXStreet (Mumbai) - NZD/USD wiped out entire RBNZ-backed gains and fell into the negative territory in early-Asia, after overnight weakness in oil prices and downbeat NZ consumer confidence data.

    NZD/USD rejected at key 200-DMA resistance

    Currently, the NZD/USD pair trades -0.18% lower at fresh session lows of 0.6745, unable to extend beyond 0.6790 region as seen previously. The Kiwi ended its two consecutive sessions of gains and turned in the red after oil prices weakest in more than six years along with the latest disappointing NZ data weighed on the sentiment around the NZD.

    Consumer confidence fell in December, down 4 points to 118.7, data from ANZ-Roy Morgan showed. While current expectations held firm, future expectations waned.

    Moreover, the renewed selling interest in the NZD/USD pair could be also attributed to profit-taking after the recent strength ahead of crucial economic releases from the US in the day ahead. The US retail sales, PPI and consumer sentiment data will be closely watched heading into next week’s Fed meeting.

    On Thursday, the kiwi advanced, despite a rate cut by the RBNZ, as traders boosted the bird on the back of bank's unwillingness to ease further. RBNZ cut the OCR from 2.75% to 2.50% yesterday.

    NZD/USD Levels to consider


    To the upside, the next resistance is located at 0.6764 (200-DMA), above which it could extend gains to 0.6783 (Dec 10 High) levels. To the downside immediate support might be located at 0.6700 (10-DMA/ round number) below that 0.6678 (1h 100-SMA).
    For more information, read our latest forex news.
     

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