NZD/USD: Bears remain in control and eye the 23.6% Fibo target
- NZD/USD traders didn't see too much in the way of price action overnight and the outlook for the day ahead looks pretty subdued with markets lacking scheduled catalysts into the New Year.
- Currently, NZD/USD is trading at 0.67 the figure, up a few pips from the 0.6693 lows but still wearing the pain of the slide for yesterday's peak up at 0.6746.
The Antipodeans have traded in tandem with the performances of stocks and Chinese data. The Kiwi was weaker the back of CN industrial profits turning negative for first time in almost three years as well as from the headlines where Trump is considering a ban on Huawei, ZTE technology by US companies.
Risk on thin ice
The various headlines alone sent global stocks off a cliff as traders struggle to comprehend the ever-changing grounds from which Trump intends to build a sustainable trading partnership with Beijing. Spooked by such shifting sentiment, the commodity complex was ending the North American day mostly lower, with base metals/oil trading as equity derivatives and the commodity and high beta currencies feeling the pinch.
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. A break of the 100-D SMA is first hurdle for the bears. However, RSI and various indicators are leaning with a bearish bias, supporting the bearish outlook for forthcoming price action.