#NZDUSD @ 0.61428 NZDUSD has picked bids from 0.6120 amid obscurity in the market sentiment. (Pivot Orderbook analysis)

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• NZDUSD has picked bids from 0.6120 amid obscurity in the market sentiment.
• The DXY is displaying a volatile performance and has surrendered intraday gains.
• The 10-year US Treasury yields have eased to 3.71% despite hawkish commentary from Fed’s Daly.

The pair currently trades last at 0.61428.

The previous day high was 0.6195 while the previous day low was 0.6129. The daily 38.2% Fib levels comes at 0.6154, expected to provide resistance. Similarly, the daily 61.8% fib level is at 0.617, expected to provide resistance.

The NZDUSD pair has witnessed buying interest after dropping to near 0.6120 in the Asian session. The asset has picked bids as the US dollar index (DXY) has turned volatile after facing selling pressure around the critical hurdle of 106.60. Market mood is displaying mixed cues as DXY has witnessed offers despite mounting geopolitical tensions between North Korea and the US.

It could be possible that market participants must be awaiting further development on North Korea-US noise for making informed decisions. The DXY has surrendered the majority of its intraday gains and is likely to remain on tenterhooks as US economic calendar has nothing much to offer this week.

Meanwhile, S&P500 futures are displaying topsy-turvy moves amid ambiguity in the risk impulse. The returns generated by long-term US government bonds have trimmed to 3.71% after printing an intraday high of 3.73%. Higher interest rate guidance by San Francisco Federal Reserve (Fed) President Mary Daly has failed to strengthen US yields.

Fed policymaker has considered a range of 4.75% – 5.25% as reasonable for the policy rate end-point. She further added that the central bank wants to see a slowdown in the economy to cool down the red-hot inflation.

On the NZ front, accelerating Covid-19 infections have not impacted the kiwi dollar much. Gita Gopinath, the first Deputy Managing Director of the International Monetary Fund (IMF), at the Caixin Summit, cited that “Calibrating China’s zero-COVID strategy to mitigate the country’s economic impact will be critical to sustain and balance the recovery,” This might impact recovery in the antipodean ahead.

Technical Levels: Supports and Resistances

NZDUSD currently trading at 0.6135 at the time of writing. Pair opened at 0.6153 and is trading with a change of -0.29 % .

The pair is trading above its 20 Daily moving average @ 0.5888, above its 50 Daily moving average @ 0.5822 , above its 100 Daily moving average @ 0.6019 and below its 200 Daily moving average @ 0.6318

The previous day high was 0.6195 while the previous day low was 0.6129. The daily 38.2% Fib levels comes at 0.6154, expected to provide resistance. Similarly, the daily 61.8% fib level is at 0.617, expected to provide resistance.

Note the levels of interest below:

• Pivot support is noted at 0.6123, 0.6093, 0.6056
• Pivot resistance is noted at 0.6189, 0.6225, 0.6255

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