NZD/USD declines on risk-off mood, extends losses to near 0.6120


  • NZD/USD loses ground as investors turn back toward US Dollar.
  • The mixed Chinese data failed to improve the Kiwi Dollar.
  • Traders await December’s US Retail Sales data to gain fresh impetus on the US economic landscape.

NZD/USD extends its losses on the third consecutive day, trading lower to near 0.6120 during the early European hours on Wednesday. The NZD/USD pair experiences downward pressure, influenced by risk aversion related to the geopolitical conflict in the Middle East. Additionally, there appears to be a slowdown in speculations over Federal Reserve (Fed) interest rate cuts in March, contributing to the downward pressure on the pair.

The New Zealand Dollar (NZD) faces downward pressure despite mixed data from China. China's annual Gross Domestic Product (GDP) grew by 5.2% in the fourth quarter, slightly below the expected 5.3%. December's Industrial Production (YoY) increased by 6.8%, surpassing the expected 6.6%. However, Retail Sales year-over-year came in at 7.4%, falling short of the market consensus of 8.0%.

The fear of weaker demand in China weighed on the Kiwi Dollar (NZD). The decline in Chinese consumer prices for a third consecutive month in December, along with a decrease in producer prices, contributed to concerns about economic conditions and demand in New Zealand's major trading partner, given the close economic ties between the two countries.

The US Dollar Index (DXY) holds steady around 103.50, supported by improved US Treasury yields, where the 2-year and 10-year yields stand at 4.26% and 4.07%, respectively. The risk-off sentiment is boosting demand for the US Dollar (USD), along with some assertive remarks from Federal Reserve (Fed) officials.

Traders are closely monitoring the upcoming US Retail Sales data for December, scheduled for release later in the day. This economic indicator provides insights into consumer spending patterns. Additionally, the release of the Fed's Beige Book and a speech by Fed's John C. Williams will be closely watched for further insights into the central bank's monetary policy stance.

NZD/USD: additional important levels

Overview
Today last price 0.6116
Today Daily Change -0.0020
Today Daily Change % -0.33
Today daily open 0.6136
 
Trends
Daily SMA20 0.6263
Daily SMA50 0.6158
Daily SMA100 0.6037
Daily SMA200 0.6091
 
Levels
Previous Daily High 0.6208
Previous Daily Low 0.6126
Previous Weekly High 0.6279
Previous Weekly Low 0.6196
Previous Monthly High 0.641
Previous Monthly Low 0.6084
Daily Fibonacci 38.2% 0.6157
Daily Fibonacci 61.8% 0.6177
Daily Pivot Point S1 0.6105
Daily Pivot Point S2 0.6075
Daily Pivot Point S3 0.6024
Daily Pivot Point R1 0.6187
Daily Pivot Point R2 0.6238
Daily Pivot Point R3 0.6269

 

 

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