NZD/USD in a sideways drift on 0.67 handle awaiting volume and a fresh catalyst
- NZD/USD rests after a day of volatility overnight.
- NZD/USD technicals lean bearish.
NZD/USD has drifted sideways in a quiet Asian session in the holiday season as traders drift in back to their desks ahead of the weekend and New Year celebrations around the corner.
NZD/USD is currently trading at 0.6729, off the highs of 0.6746 having recovered from the 0.6716 overnight session lows.
The greenback was on a tear overnight which weighed heavily on the bird initially before risk bounced sending stocks higher and supporting the high betas, commodities.
Politics in the driving seat
There is nothing from the domestic calendar and focus will remain with state of affairs in the US government which partially closed its doors due to a funding dispute as well as the global economic outlook. Trump has said Tuesday that the government won’t reopen until “we have a wall, fence, whatever they like to call it.”
NZD/USD dropped back below the 38.2% Fibo and now eyes a test of S3 down at 0.6714. The prospects for a flight towards the 61.8% Fibo at 0.7048 have flipped to the 23.6% fibo as a more likely scenario instead. RSI and various indicators are leaning with a bearish bias, supporting the bearish outlook for forthcoming price action.