The NZD/USD pair stalled its overnight slide in Asia, although remains vulnerable as the extended sell-off in the Asian equities combined with subdued oil prices weigh negatively on the Kiwi.
NZD/USD capped by 0.6750
Currently, the NZD/USD pair trades almost unchanged at 0.6744, hovering in a 15-pips slim range so far this session. The Kiwi is currently seen consolidating the downside and awaits fresh impetus for the next push lower as the risk remains to the downside on the back of widespread risk-aversion.
A renewed bout of risk-aversion hit Asia after the PBOC slightly devalued yuan today after three back-to-back sessions of gains, and led to sharp losses in the local stock markets. The Chinese benchmark index, the Shanghai Composite plunges nearly 2%, while CSI300 drops -1.75%.
Meanwhile, cautious tone is likely to extend further in the day ahead as markets remain unnerved ahead of the Chinese CPI figures and the RBNZ policy decision due later this week. Hence, the demand for the higher-yielding currency NZD may remain weak as sentiment surrounding stocks and oil will continue to drive markets.
NZD/USD Levels to consider
To the upside, the next resistance is located at 0.6800 (round number), above which it could extend gains to 0.6823/46 (Mar 4 High/ Jan 4 High). To the downside immediate support might be located at 0.6700/0.6697 (round number/ 1h 200-SMA) and from there to 0.6681 (20-DMA).
(Market News Provided by FXstreet)
