- NZD/USD remains pressured around intraday low following multiple catalyst from Australia, China and New Zealand.
- Firmer Aussie jobs report, PBOC rate cut couldn’t withstand NZ PM Ardern’s warning.
- RSI retreat, sluggish MACD direct sellers towards the monthly support.
- Two-month-old horizontal area acts as an additional upside filter.
NZD/USD remains on the back foot around 0.6775, extending early Asian losses during Thursday.
In doing so, the Kiwi pair reverses from 100-SMA while justifying New Zealand Prime Minister Jacinda Ardern’s warning to tighten the activity measures if the Omicron spreads faster.
With this, the quote rejects the previous bullish bias due to the upbeat Aussie jobs report for December and the People’s Bank of China’s (PBOC) first 5-year Loan Prime Rate (LPR) cut in 21 months.
That said, the downward sloping RSI line, not oversold, joins sluggish MACD and failures to cross the 100-SMA to direct NZD/USD prices towards a one-month-old rising support line, around 0.6755 by the press time.
In a case where the pair sellers dominate past 0.6755, the year 2021 trough surrounding 0.6700 will regain the market’s attention.
Alternatively, recovery moves beyond 100-SMA level of 0.6800 may aim for 0.6860 but a horizontal area comprising multiple levels marked since late November, close to 0.6890-95, will be a tough nut to crack for the NZD/USD bulls.
Should NZD/USD prices rally past 0.6895, the 0.6900 will act as a validation point for the rally towards the 0.7000 psychological magnet.
NZD/USD: Four-hour chart
Trend: Further weakness expected