NZD/USD Heavy, Set to Test 50-DMA as Oil Deepens Losses
NZD/USD’s recovery
from NY lows faltered just shy of 0.69 handle, and the prices came
under renewed selling pressure as Oil resumed decline and triggered
fresh risk-aversion wave across the financial markets.
NZD/USD finally breaks to the downside
Currently,
the NZD/USD pair trades -0.42% lower, in the vicinity of the fresh
session lows struck at 0.6848 in the last hour. The Kiwi finally broke
the overnight consolidation phase to the downside and now languishes
near session lows as markets give up riskier/ higher yielding assets
amid persisting risk-off profile, spurred by weaker oil prices as well
as global equities.
Moreover, the NZD/USD pair receives a
negative ‘rub-off’ effect from its antipodean partner after the Aussie
plunged nearly 80-pips following the downward revisions to the inflation
forecasts as reflected by the RBA SoMP. While calls for further RBA
rate cuts also added to the bearish sentiment around the AUD.
Looking ahead, the broader market sentiment is likely to dominate the moves in the Kiwi ahead of the critical US payrolls release.
NZD/USD Levels to consider
To
the upside, the next resistance is located at 0.6900/12 (daily high/
5-DMA), above which it could extend gains to 0.6941/57 (Apr 22 high/
daily R3). To the downside immediate support might be located at 0.6832
(50-DMA) and from there to 0.6800 (round number).
