NZD/USD extends the slide below 0.6850
- Risk-on ignored?
- Trades below all major DMAs
- US jobless claims, NZ manufacturing sales eyed
Fresh bids appear to have emerged near 0.6830 region last hour, putting a brake on the relentless supply seen around he NZD/USD pair from just shy of 0.69 handle.
NZD/USD: Bears back in control?
The spot reversed the three-day recovery mode and fell back into losses on the back of rising US dollar versus its major peers in tandem with Treasury yields, as markets speculate faster pace of Fed rate hikes in the coming months on the US tax reform optimism. Therefore, the monetary policy divergence between the Fed and RBNZ is back in play.
Moreover, the overnight declines in the commodities’ prices also add to the downside in the resource-linked NZD, while the Kiwi also remains undermined by the latest Fitch report on the APAC economies, which highlighted a slowdown in China, albeit modest.
Looking ahead, it remains to be seen whether the recent rise in NZ dairy prices and risk-on moods are able to offer some respite to the bulls, as focus shifts towards the US jobless claims and NFP data.
NZD/USD Levels to consider
The spot trades below 0.6850 (psychological levels), below which 0.6820 (classic S3) and 0.6780 (multi-month lows) are key near-term downside areas. To the topside, a break above 0.6900 (round number) could open doors towards 0.6926 (50-DMA).