#NZDUSD @ 0.56824 New Zealand dollar’s reversal from 0.5720, contained at 0.5645. (Pivot Orderbook analysis)

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• New Zealand dollar’s reversal from 0.5720, contained at 0.5645.
• The kiwi remains moderately positive amid a risk-on mood.
• NZD/USD is expected to consolidate between 1.5570 and 1.5755 – UOB.

The pair currently trades last at 0.56824.

The previous day high was 0.565 while the previous day low was 0.5551. The daily 38.2% Fib levels comes at 0.5612, expected to provide support. Similarly, the daily 61.8% fib level is at 0.5589, expected to provide support.

The New Zealand dollar remains bid for the second consecutive day on Tuesday. The pair’s reversal from the 0.5700 area has found support at the mid-0.5600, before picking up again to the 0.5685 area.

Monday’s positive market sentiment seems to have extended into Tuesday. European stock markets closed with advances between 0.2% and 0.9%, while the US indexes are posting gains beyond 1%, which is underpinning New Zealand dollar’s moderate positive tone.

In the macroeconomic docket, the higher-than-expected New Zealand Consumer Price Index has fed hopes of further monetary tightening by the Reserve Bank of New Zealand, which has provided some support to the NZD.

Kiwi bulls, however, seem to be capped below 0.5700 as hopes of another aggressive Fed rate hike in September, are keeping USD weakness on a leash. The market is pricing in a nearly 100% chance that the Fed will hike rates by 75 basis points in November which provides significant support to the USD.

Regarding the near-term perspective, FX analysts at UOB expect the pair to consolidate at current levels: “The breach of our ‘strong resistance’ level at 0.5560 indicates that the weakness in NZD has ended. NZD appears to have moved into a consolidation phase and is likely to trade between 0.5570 and 0.5755 for the time being.”

Technical Levels: Supports and Resistances

NZDUSD currently trading at 0.5683 at the time of writing. Pair opened at 0.5628 and is trading with a change of 0.98 % .

The pair remains strongly bearish on the daily time frame. It trades below the 20 SMA @ 0.5689, 50 SMA 0.5976, 100 SMA @ 0.6129 and 200 SMA @ 0.641.

The previous day high was 0.565 while the previous day low was 0.5551. The daily 38.2% Fib levels comes at 0.5612, expected to provide support. Similarly, the daily 61.8% fib level is at 0.5589, expected to provide support.

Note the levels of interest below:

• Pivot support is noted at 0.557, 0.5511, 0.5471
• Pivot resistance is noted at 0.5669, 0.5709, 0.5767

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