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NZD/USD: Minor-recovery capped by 0.6760

FXStreet (Mumbai) - NZD/USD’s recovery from NY lows at 0.6720 lost steam just ahead of the mid-point of 0.67 handle, and the prices reverted into the red as the Kiwi failed to benefit from the renewed risk-on sentiment.

NZD/USD trades below daily pivot at 0.6769

Currently, the NZD/USD pair trades -0.23% lower near fresh session lows of 0.6735, and look to test almost 2-week lows struck at 0.6717 levels. The Kiwi failed to take the yield advantage amid the ongoing recovery in the oil prices as well as the Chinese equities following the heavy sell-off on Monday.

The Kiwi remains under pressure in late-Asia on the back of a broadly higher US dollar while markets remain wary ahead of Fonterra’s dairy auction results due later in the NY session.

On Monday, weak Chinese PMI report and the failure to take out 0.69 technical barrier weighed heavily on the NZD/USD pair. While the sell-off in China stocks, with markets jittery ahead of Jan 8 ban on short-selling also induced sharp losses in the Kiwi.

NZD/USD Levels to consider

To the upside, the next resistance is located at 0.6769 (daily pivot), above which it could extend gains to 0.6790/96 (1h 50-SMA/ 20-DMA) levels. To the downside immediate support might be located at 0.6717 (Jan 4 Low) below that 0.6687 (200-DMA).

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