OctaFX | OctaFX Forex Broker
Open trading account
Back

NZD/USD sinks in tandem with Oil, near 0.6750

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).

EUR/USD finds support around 1.1000

The common currency is clinging to its daily gains vs. the dollar, now taking EUR/USD to the 1.1025/30 band...
Read more Previous

USDCAD: Missing the optimism – TDS

Ned Rumpeltin, European Head of Currency Strategy at TD Securities, suggests that there may be additional pressure on the USDCAD as we expect today's US ISM manufacturing survey to slip into contractionary territory.
Read more Next
Start livechat