NZD/USD rebounds from six-day lows back above 0.6950
- Kiwi trims losses versus the greenback, remains among worst performers.
- NZD/USD drops for the first time after rising during four consecutive trading days.
The NZD/USD bottomed during the American session at 0.6938, the lowest level since last Wednesday, and then rebounded sharply, trimming losses. The pair rose to 0.6970, boosted by a decline of the US dollar across the board.
The greenback tumbled amid end-of-month flows. The move lower took place amid no particular catalyst. In the US bond market, yields remains in negative for the day but did not print fresh lows and in Wall Street, main stock indices hold in red.
Economic data from the US came in mixed on Tuesday. Attention is set on the FOMC meeting. On Wednesday the US central bank will announce its decision, most likely no changes. “We expect tapering discussions will step up in intensity at the FOMC meeting this week. These will focus on timing, speed and composition. Recent comments from Chair Powell suggest the Fed is some months off an announcement on tapering”, wrote analysts at ANZ.
The kiwi is among the worst performers on Tuesday. Despite trimming losses versus the dollar still NZD/USD is on negative for the day, about to end a 4-day positive streak. AUD/NZD is sharply higher, rebounding from monthly lows, about to test 1.0600.
Technical levels