The US dollar staged a solid comeback from more-than three-year lows, triggering a fresh selling-wave in the NZD/USD pair. The 17 January NZDUSD Technical Forecast discloses more.
17 January, GKFX– Having failed several attempts to regain the 0.73 handle, the NZD/USD pair came under intense selling pressure, mainly driven by the resurgence of the US dollar demand across the board.
- DXY rebound knocks-off Kiwi.
- Risk-aversion undermines.
- Awaits US & China data.
NZD/USD finds support near 0.7285
The US dollar staged a solid comeback from more-than three-year lows versus its major rivals, triggering a fresh selling-wave in the NZD/USD pair while persisting risk-off market profile, reflected by negative Asian equities and subdued Treasury yields amid fresh North Korea headlines also add to the weight on the higher-yielding currency NZD.
Moreover, a profit-taking slide from the four-month top also cannot be ruled out, as investors gear up for the Chinese macro releases due tomorrow, with the main focus on the GDP figures. The NZD has used a liquid proxy for bets on China, as China is New Zealand’s top trading partner.
However, the losses may remain capped, in the wake of rising dairy prices and ongoing oil-price rally. Ahead of the China data dump, the pair awaits the US industrial production data and Fed Beige book release for fresh near-term trading opportunities.
17 January NZDUSD Technical Forecast
The pair finds next resistances at 0.7315 (4-month tops), at 0.7350 (psychological levels), 0.7391 (classic R3). Meanwhile, the supports are located at 0.7228 (10-DMA), 0.7200 (zero figure) and 0.7160/52 (200 & 20-DMA).
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