NZD/USD pulls away from multi-week highs, looks to close near 0.6170


The NZD/USD pair rose to its highest level in 11 weeks at 0.6233 on Wednesday but lost its traction in the second half of the day. As of writing, the pair was trading at 0.6170, losing 0.4% on a daily basis.

USD capitalizes on risk-off flows

The broad-based selling pressure surrounding the greenback helped the pair post strong gains on Tuesday and allowed it to stretch higher. The US Dollar Index (DXY) fell to its worst level in more than three weeks at 98.72 during the European trading hours.

However, heightened tensions between the US and China over Hong Kong weighed on market sentiment and caused the China-proxy kiwi to weaken against its rivals.

US Secretary of State Mike Pompeo on Wednesday announced the US was no longer autonomous from China. "No reasonable person can assert today that Hong Kong maintains a high degree of autonomy from China, given facts on the ground," Pompeo said in a statement. 

Boosted by the souring market mood, the DXY staged a rebound and caused the bearish pressure to remain intact. At the moment, the index remains on track to close the day modestly higher around 99.10.

In the early trading hours of the Asian session on Thursday, the ANZ will release its Business Confidence Index and Activity Outlook Index for New Zealand.

Technical levels to watch for


Today last price0.617
Today Daily Change-0.0030
Today Daily Change %-0.48
Today daily open0.62


Daily SMA200.6076
Daily SMA500.6001
Daily SMA1000.621
Daily SMA2000.6319


Previous Daily High0.6229
Previous Daily Low0.6093
Previous Weekly High0.6159
Previous Weekly Low0.5927
Previous Monthly High0.6176
Previous Monthly Low0.5843
Daily Fibonacci 38.2%0.6177
Daily Fibonacci 61.8%0.6145
Daily Pivot Point S10.6119
Daily Pivot Point S20.6038
Daily Pivot Point S30.5983
Daily Pivot Point R10.6255
Daily Pivot Point R20.631
Daily Pivot Point R30.6391