#NZDUSD @ 0.57343 has displayed a rebound move to near 0.5700 as DXY turns quiet after a roller-coaster move. (Pivot Orderbook analysis)

…
This is a premium post.
[s2If !current_user_can(access_s2member_level4)]Please register for PREMIUM VERSION HERE to read full post below containing analysis. In case of any error or you think you are not able to read the full post below, please email us at support#nehcap.com [lwa][/s2If] [s2If current_user_can(access_s2member_level4)]

• NZD/USD has displayed a rebound move to near 0.5700 as DXY turns quiet after a roller-coaster move.
• Investors’ risk appetite has trimmed as S&P500 futures have surrendered their morning gains.
• The US S&P PMI data is expected to display a weaker performance ahead.

The pair currently trades last at 0.57343.

The previous day high was 0.5771 while the previous day low was 0.5599. The daily 38.2% Fib levels comes at 0.5705, expected to provide support. Similarly, the daily 61.8% fib level is at 0.5665, expected to provide support.

The NZD/USD pair has defended the downside around 0.5720 as investors are shrugging off fears of China Xi Jinping’s third-term leadership announcement. The asset has started displaying reflex actions after a drop and is expected to recover ahead.

Overall risk profile in the market is displaying a decline in investors’ risk appetite as S&P500 futures have surrendered major of their morning gains. The US dollar index (DXY) is eyeing stability after a roller-coaster ride and is continuously auctioning above the critical hurdle of 112.00. Returns on US government bonds have declined sharply. The 10-year US Treasury yields have tumbled to 4.16%, at the press time.

The continuation of China’s XI Jinping leadership for the third time has created havoc for Chinese equities as the risk of a slowdown in economic prospects has escalated. It is worth noting that New Zealand is a leading trading partner of China and weaker Chinese prospects could lead to lower exports for the antipodean.

Also, Monday morning’s China Trade Balance data impacted the kiwi bulls. The overall Trade Balance has accelerated to $84.74B vs. the expectations of $81.0B and the prior release of $79.39B. China’s export data has remained upbeat while their imports have remained flat at 0.3%, much lower than the estimates of 1%. A lower-than-projected Chinese imports data brought volatility in the kiwi counter.

Going forward, the US S&P PMI data will be a key trigger for the asset. The Manufacturing PMI is expected to decline to 51.2 vs. the prior release of 52.0 while the Services PMI may drop to 49.2 from 49.3 reported earlier.

Technical Levels: Supports and Resistances

NZDUSD currently trading at 0.5732 at the time of writing. Pair opened at 0.575 and is trading with a change of -0.31 % .

The pair is trading above its 20 Daily moving average @ 0.5661, below its 50 Daily moving average @ 0.592 , below its 100 Daily moving average @ 0.6096 and below its 200 Daily moving average @ 0.6387

The previous day high was 0.5771 while the previous day low was 0.5599. The daily 38.2% Fib levels comes at 0.5705, expected to provide support. Similarly, the daily 61.8% fib level is at 0.5665, expected to provide support.

Note the levels of interest below:

• Pivot support is noted at 0.5643, 0.5535, 0.5471
• Pivot resistance is noted at 0.5815, 0.5879, 0.5987

[/s2If]
Join Our Telegram Group