The NZD/USD pair extended its bearish momentum for the third straight session and went to hit fresh three-week lows at 0.7187 levels amid strengthening demand for the US dollar across the board. What is more? The 1 March NZDUSD Fundamental Drivers Analysis reveals.
1 March, GKFX – The spot is seen making minor recovery attempts and looks to regain the 0.72 handle, as the bulls were offered some respite from the unexpected improvement seen in the Chinese manufacturing sector activity, as reported by Caixin earlier today.
However, it remains to be seen if the major can sustain the recovery mode, as risk-off sentiment seen across the Asian markets continue to weigh negatively on the higher-yielding currency, the NZD. Meanwhile, the Kiwi tracks the declines in its OZ neighbor, the Aussie, after the Aus capex data disappointing markets.
Focus shifts to US data and Powell’s testimony
From a broader perspective, the divergent monetary policy outlooks continue to remain in the favor of the greenback, given the recent hawkish surprise delivered by the new Fed Chair Powell while the RBNZ is expected to remain on hold in the coming months, despite reasonable NZ fundamentals.
Later today, the pair will take cues from the US core PCE price index, jobless claims and ISM manufacturing PMI ahead of the Fed Chair Powell’s testimony before the Senate Banking Committee.
1 March NZDUSD Fundamental Drivers Analysis
The pair is likely to accelerate the fall towards 100-day SMA support near the 0.7170 region before eventually aiming to test the 0.7100 round figure mark. Meanwhile, on the upside, 0.7240-45 area (50-day SMA) now seems to act as an immediate resistance, above which a bout of short-covering could lift the pair back towards the 0.7300 handle en-route 0.7335-40 supply zone.
This article 1 March NZDUSD Fundamental Drivers Analysis was written by analysts at GKFX. The information provided herein is for general informational and educational purposes only. It is not intended and should not be construed to constitute advice.
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