- NZD/USD is staging a modest rebound following this week’s sharp decline.
- US Dollar Index stays relatively quiet above 92.50.
- Focus shifts to key macroeconomic data releases from US.
The NZD/USD pair registered its lowest daily close since mid-November at 0.6955 on Wednesday. The kiwi suffered heavy losses after the New Zealand government announced that it will be introducing a new NZD3.8 billion fund to boost the housing supply and curb housing prices.
On Thursday, the pair staged a rebound and was last seen gaining 0.3% on the day at 0.6982. However, in the absence of significant fundamental drivers, this move seems to be a technical correction, suggesting that the pair remains vulnerable to additional losses.
In the meantime, the US Dollar Index is moving sideways above 92.50, making it difficult for NZD/USD to extend its recovery. Later in the session, the US Bureau of Economic Analysis’ fourth-quarter GBP report and the US Department of Labor’s weekly Initial Jobless Claims data will be looked upon for fresh impetus.
NZD/USD technical outlook
“Beyond that, we retain a cautiously bullish stance,” analysts added. “We continue to expect global risk sentiment to remain elevated; supported by the unprecedented central bank and government stimulus, as well as vaccine developments. Commodity currencies should strengthen in that environment.”
Key levels to watch for
|Today last price||0.6978|
|Today Daily Change||0.0016|
|Today Daily Change %||0.23|
|Today daily open||0.6962|
|Previous Daily High||0.7019|
|Previous Daily Low||0.6956|
|Previous Weekly High||0.727|
|Previous Weekly Low||0.7142|
|Previous Monthly High||0.7466|
|Previous Monthly Low||0.7135|
|Daily Fibonacci 38.2%||0.698|
|Daily Fibonacci 61.8%||0.6995|
|Daily Pivot Point S1||0.6939|
|Daily Pivot Point S2||0.6915|
|Daily Pivot Point S3||0.6875|
|Daily Pivot Point R1||0.7002|
|Daily Pivot Point R2||0.7043|
|Daily Pivot Point R3||0.7066|
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