#NZDUSD @ 0.55567 New Zealand’s dollar dives from 0.5680 high to 0.5550 area. (Pivot Orderbook analysis)

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• New Zealand’s dollar dives from 0.5680 high to 0.5550 area.
• The kiwi approaches long-term lows at 0.5475.
• The US dollar appreciates on expectations of another 0.75% rate hike in November.

The pair currently trades last at 0.55567.

The previous day high was 0.5655 while the previous day low was 0.5512. The daily 38.2% Fib levels comes at 0.56, expected to provide resistance. Similarly, the daily 61.8% fib level is at 0.5567, expected to provide resistance.

The New Zealand dollar is going through a strong reversal on Friday, weighed by the overall USD strength. The kiwi turned down from session highs near 0.5700 to 0.5550 so far, approaching the 2020 low at 0.5475.

The greenback is rallying across the board on Friday, paring losses seen earlier this week, with investors anticipating the fourth consecutive 75 basis points rate hike in November. The higher-than-expected US inflation data seen on Thursday has offered additional reasons for the bank to maintain its aggressive monetary tightening cycle.

Beyond that, investors concerns about an upcoming global recession have also favoured the US dollar on the back of its safe-haven status.

In the macroeconomic docket, New Zealand’s Business NZ PMI data showed a larger-than-expected deceleration in September. Business activity slowed down to 52 from 52.5 in August, against expectations of a 52.5 reading.

Technical Levels: Supports and Resistances

NZDUSD currently trading at 0.5554 at the time of writing. Pair opened at 0.5635 and is trading with a change of -1.44 % .

The pair remains strongly bearish on the daily time frame. It trades below the 20 SMA @ 0.5726, 50 SMA 0.6002, 100 SMA @ 0.6148 and 200 SMA @ 0.6421.

The previous day high was 0.5655 while the previous day low was 0.5512. The daily 38.2% Fib levels comes at 0.56, expected to provide resistance. Similarly, the daily 61.8% fib level is at 0.5567, expected to provide resistance.

Note the levels of interest below:

• Pivot support is noted at 0.5546, 0.5457, 0.5403
• Pivot resistance is noted at 0.5689, 0.5744, 0.5833

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