#NZDUSD @ 0.56329 is pressured in a risk-off environment. (Pivot Orderbook analysis)

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• NZD/USD is pressured in a risk-off environment.
• US dollar and stocks dominant the bird.

The pair currently trades last at 0.56329.

The previous day high was 0.5755 while the previous day low was 0.5625. The daily 38.2% Fib levels comes at 0.5675, expected to provide resistance. Similarly, the daily 61.8% fib level is at 0.5705, expected to provide resistance.

NZD/USD is back to flat on the day while the price ranged between a low of 0.5624 and a high of 0.5721. The bird is a high beta currency and is being dictated by the stock markets in the absence of domestic data.

Meanwhile, markets were once again volatile on Tuesday leading to a mixed close in US stocks after hitting fresh 2022 lows in midday trade. US data was showing that consumer confidence was growing above expectations and new-home sales logged an unexpected rise. Elsewhere, Fed speakers were the driver. St. Louis Fed President James Bullard and Chicago Fed President Charles Evan advocated more interest rate hikes even at the risk of slowing economic growth.

Later in the day, Minneapolis Federal Reserve Bank President Neel Kashkari on Tuesday said in a WSJ Live interview that central bankers are united in their determination to do what needs to be done to bring inflation down, and financial markets understand that. “There’s a lot of tightening in the pipeline,” Kashkari said.

The benchmark S&P 500 erased gains of up to 1.7% by early afternoon trading to hit lows last seen in late November 2020 and was down some 0.2% by the close. The US dollar, as measured by the DXY index, is back to trading in the 114 area but is currently under pressure below the highs of the day of 114.47.

In terms of the kiwi, ”as to where we go from here – sentiment seems split two ways – with some saying this is an extreme move that will be unwound, and others saying that the rampant inflation/fiscal unsustainability “tinderbox” of market discontent was just waiting for a spark, and recent moves reflect markets belatedly re-pricing risk,” analysts at ANZ Bank said. ”We think it’s more of the latter, and don’t expect the going to get any easier, or for volatility to die down, anytime soon.”

Technical Levels: Supports and Resistances

NZDUSD currently trading at 0.5632 at the time of writing. Pair opened at 0.5637 and is trading with a change of -0.09 % .

The pair remains strongly bearish on the daily time frame. It trades below the 20 SMA @ 0.5991, 50 SMA 0.6158, 100 SMA @ 0.6237 and 200 SMA @ 0.6495.

The previous day high was 0.5755 while the previous day low was 0.5625. The daily 38.2% Fib levels comes at 0.5675, expected to provide resistance. Similarly, the daily 61.8% fib level is at 0.5705, expected to provide resistance.

Note the levels of interest below:

• Pivot support is noted at 0.559, 0.5542, 0.5459
• Pivot resistance is noted at 0.572, 0.5803, 0.585

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