#NZDUSD @ 0.62950 N slides to a nearly three-week low and is pressured by a modest USD strength. (Pivot Orderbook analysis)

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• NNZD/USD slides to a nearly three-week low and is pressured by a modest USD strength.
• The Fed’s hawkish outlook and rising US bond yields help revive demand for the greenback.
• Acceptance below the $0.6300 mark supports prospects for additional losses for the major.

The pair currently trades last at 0.62950.

The previous day high was 0.6397 while the previous day low was 0.63. The daily 38.2% Fib levels comes at 0.6337, expected to provide resistance. Similarly, the daily 61.8% fib level is at 0.636, expected to provide resistance.

The NZD/USD pair comes under heavy selling pressure on Wednesday and drops to a nearly three-week low during the first half of the European session. The pair is currently placed just below the 0.6300 mark, down around 0.75% for the day, and is pressured by a modest US Dollar strength.

The Bank of Japan’s policy tweak, which triggered a sell-off in bond markets on Tuesday, along with the Fed’s hawkish commentary last week, continues to push the US Treasury bond yields higher. In fact, the yield on the benchmark 10-year US government bond hits a fresh monthly low and helps revive demand for the greenback, which, in turn, is seen weighing on the NZD/USD pair.

The New Zealand Dollar, meanwhile, fails to gain any respite from the upbeat domestic data, showing that the trade deficit narrowed to $1,863 million in November from $2298 million previous. That said, a recovery in the global risk sentiment might hold back traders from placing aggressive bullish bets around the safe-haven buck and lend support to the perceived riskier Kiwi.

Nevertheless, a convincing break and acceptance below the 0.6300 mark for the NZD/USD pair could be seen as a fresh trigger for bearish traders. This, in turn, supports prospects for an extension of the recent pullback from over a six-month top, just above the 0.6500 psychological mark, touched earlier this December. Hence, any attempted recovery is likely to get sold into.

Traders now look forward to the US economic docket, featuring the release of the Conference Board’s Consumer Confidence Index. This, along with the US bond yields and the broader risk sentiment, will influence the USD and provide some impetus to the NZD/USD pair. The focus will then shift to the final US Q3 GDP print and the US Core PCE Price Index on Thursday and Friday, respectively.

Technical Levels: Supports and Resistances

NZDUSD currently trading at 0.6293 at the time of writing. Pair opened at 0.634 and is trading with a change of -0.74 % .

The pair is trading below its 20 Daily moving average @ 0.6336, above its 50 Daily moving average @ 0.6056 , above its 100 Daily moving average @ 0.6042 and above its 200 Daily moving average @ 0.6265

The previous day high was 0.6397 while the previous day low was 0.63. The daily 38.2% Fib levels comes at 0.6337, expected to provide resistance. Similarly, the daily 61.8% fib level is at 0.636, expected to provide resistance.

Note the levels of interest below:

• Pivot support is noted at 0.6295, 0.625, 0.6198
• Pivot resistance is noted at 0.6391, 0.6442, 0.6487

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