NZD/USD: Sellers back in control, eyes 100-DMA

The Kiwi extended its bearish momentum into fourth day today, now revering towards daily lows, after having stalled its recovery near 0.7185 region.

Currently, the NZD/USD pair drops -0.51% to 0.7155, looking to session lows of 0.7145. The bears fought back control over the last hour, after the greenback regained lost footing across the board from Trump’s speech induced minor-sell-off.

Moreover, renewed strength seen behind the treasury yields triggered the latest leg down in the NZD/USD pair. Higher treasury yields dampen demand for the NZD as an alternative higher-yielding currency. While weaker NZ fundamentals continue to keep any recovery short-lived.

Further, markets appear to overlook upbeat Caixin Chinese manufacturing PMI data, as the USD dynamics continue to remain the key driver across the fx board today, in wake of Trump’s Congressional address.

NZD/USD Levels to consider

To the upside, the next resistance is located at 0.7200 (zero figure), above which it could extend gains to 0.7231 (daily R1) and from there to 0.7250 (psychological levels). To the downside immediate support might be located at 0.7121 (100-DMA) and from there to at 0.7100 (round figure), below which 0.7074 (Jan 16 low) would be tested.