The 19 March NZDUSD Fundamental Analysis reveals that the pair is showing some very early signs of a recovery in Asia after a heavy few sessions towards the end of last week where the bird fell of its perch on the 0.73 handle and landed hard, touching just below 0.7210.
19 March, GKFX – Currently, NZD/USD is trading at 0.7223, up from a low of 0.7216 and having made a high of 0.7226.
Bear pressure continued in the US shift
Dragged lower by the Aussie that was last week’s underperformer on Friday, down to the lowest levels since December, the Kiwi fell almost as hard far, from 0.7260 to 0.7208. NZD/USD opened near 0.7245 after the pair traded heavy in Europe’s morning and London, the bear pressure continued in the US shift.
NZD/USD: focus is on divergent policy outlooks for Fed and RBNZ – ANZ
NZD/USD’s closing performance
The US session offered some good data for the economy vs a backdrop of previous disappointments; The dollar took the most out of it and rallied on the better than forecasted results in both IP and the Michigan sentiment data sending the Kiwi off a cliff.
For the week ahead, on the domestic front, we have the Westpac Q1 consumer survey and milk auction due, while the main focus will stay o the FOMC where a rate hike is expected while Central Bank divergence will likely lead the theme for the start of the week, keeping a lid on rallies and recovery attempts on elevated US short-term yields.
19 March NZDUSD Fundamental Analysis
Techs are bearish with RSIs biased to the downside while the bird’s pair holds below the 10, 21 and 55-DSMAs. The 200-D SMA is now in focus at 0.7183 on a break of 0.7200 and the triple bottom lows.
Closes need to occur above 0.7320 with the 21-D SMA falling in at 0.7281 as the first major hurdle. 0.7360 is the next key upside target in the near term to open a run towards 0.7435 daily high double top.
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