NZD/USD continues to edge lower toward 0.7100 on modest USD recovery

NZD/USD is staying on the back foot at the start of the week.
US Dollar Index stays in the positive territory above 92.30.
Wall Street's main indexes remain on track to open flat.

Eren Sengezer FXStreet

Following last week's upsurge, the NZD/USD pair staged a technical correction and closed in the negative territory on Monday. After spending the Asian trading hours moving sideways in a relatively tight range on Tuesday, the pair extended its slide and was last seen losing 0.33% on a daily basis at 0.7114.

USD continues to gather strength

Earlier in the day, a sharp upsurge witnessed in the AUD/USD pair on the Reserve Bank of Australia's monetary policy announcements helped NZD/USD edge higher. However, AUD/USD quickly reversed its direction and is currently losing 0.6% on the day, making it difficult for positively-correlated NZD/USD to recover its losses.

Breaking: AUD/USD jumps as RBA keeps rates on-hold, maintains tapering plans.

On the other hand, the US Dollar Index, which slumped to a monthly low following the dismal August jobs report on Friday, is pushing higher for the second straight day on Tuesday and was last up 0.12% at 92.32.

In the absence of high-tier macroeconomic data releases, the cautious market mood seems to be helping the USD find demand. At the moment, major European equity indexes are down between 0.25% and 0.35% while the US stocks futures trade flat on the day.

During the American trading hours, the GDT auction from New Zealand will be looked upon for fresh impetus. The only noteworthy event in the US economic docket will be the 3-year Treasury note auction that will take place at 1700 GMT.

Technical levels to watch for

NZD/USD

Overview
Today last price	0.7115
Today Daily Change	-0.0020
Today Daily Change %	-0.28
Today daily open	0.7135

Trends
Daily SMA20	0.6995
Daily SMA50	0.6991
Daily SMA100	0.7084
Daily SMA200	0.7116

Levels
Previous Daily High	0.7162
Previous Daily Low	0.7127
Previous Weekly High	0.7171
Previous Weekly Low	0.6987
Previous Monthly High	0.7089
Previous Monthly Low	0.6805
Daily Fibonacci 38.2%	0.714
Daily Fibonacci 61.8%	0.7149
Daily Pivot Point S1	0.712
Daily Pivot Point S2	0.7106
Daily Pivot Point S3	0.7085
Daily Pivot Point R1	0.7155
Daily Pivot Point R2	0.7176
Daily Pivot Point R3	0.719

Author

Eren Sengezer

FXStreet

As an economist at heart, Eren Sengezer specializes in the assessment of the short-term and long-term impacts of macroeconomic data, central bank policies and political developments on financial assets.

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