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NZD/USD turns lower, slides to over 1-week lows around 0.6365 region

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NZD/USD turns lower, slides to over 1-week lows around 0.6365 region

  • Escalating geopolitical tensions in the Middle East seemed to benefit the USD’s safe-haven status.
  • The global flight to safety seemed to drive flows away from perceived riskier currencies – like the Kiwi.

The NZD/USD pair failed to capitalize on its early uptick and has now drifted into the negative territory for the fourth consecutive session, hitting over one-week lows around the 0.6365 region in the last hour.

The prevailing risk-off mood – as depicted by a weaker trading sentiment around equity markets and reinforced by a sharp downfall in the US Treasury bond yields – underpinned the US Dollar’s relative safe-haven status and was seen driving flows away from perceived riskier currencies – like the Kiwi.

Reviving safe-haven exerts some pressure

Drone strikes on the world’s largest crude-processing facilities in Saudi Arabia over the weekend increased tensions between the US and Iran. This coupled with weaker Chinese macro data further fueled concerns about slowing global growth and dented the global risk sentiment at the start of a new week.

With investors looking past the recent optimism over the resumption of the US-China trade talks, the global flight to safety now seemed to act an exclusive driver of the pair’s momentum through the mid-European session on Monday amid absent relevant market moving economic releases from the US.

It, however, remains to be seen if the ongoing slide marks the end of the recent corrective bounce from multi-year lows or is seen as a buying opportunity as market participants now start repositioning for this week’s key event risk – the highly anticipated FOMC meeting on September 17-18.

Technical levels to watch

NZD/USD

OVERVIEW
Today last price 0.6364
Today Daily Change -0.0013
Today Daily Change % -0.20
Today daily open 0.6377
TRENDS
Daily SMA20 0.6378
Daily SMA50 0.651
Daily SMA100 0.6551
Daily SMA200 0.6671
LEVELS
Previous Daily High 0.6411
Previous Daily Low 0.6372
Previous Weekly High 0.6452
Previous Weekly Low 0.6372
Previous Monthly High 0.659
Previous Monthly Low 0.6283
Daily Fibonacci 38.2% 0.6387
Daily Fibonacci 61.8% 0.6396
Daily Pivot Point S1 0.6362
Daily Pivot Point S2 0.6348
Daily Pivot Point S3 0.6323
Daily Pivot Point R1 0.6401
Daily Pivot Point R2 0.6426
Daily Pivot Point R3 0.644
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