Dollar holds lower at the balance ahead of European trading

The pair looks to be on an inevitable push lower towards testing its 200-day moving average again, with the key level seen at 151.97 currently. The slight drop at the start of the month met a stall there before the rebound after the US election result. And now we’re circling back to that again.

Besides that, the dollar is trading lightly changed elsewhere although the kiwi is sitting higher after the RBNZ policy decision earlier.

There was a bit of a cock up as Eamonn highlighted here but the kiwi is still sitting higher amid some thinking that the RBNZ might move to cut rates at a slower pace next. The latter was refuted by Orr in his press conference though, as seen here.

NZD/USD is off its high of 0.5880 earlier to around 0.5863 with traders now battling it out around its 200-hour moving average of 0.5861. Move back below that and the near-term bias shifts back to being more neutral again, with the 100-hour moving average only seen at 0.5846 currently.

In the bigger picture though, NZD/USD appears to be catching a bounce off the lower end of its range over the past two years. That being at the 0.5800 level. That was where the drop in October 2023 also failed on the daily and weekly charts, so that’s something to take note of.

Looking to the day ahead, we’re not likely to get much from European trading again amid a lack of key data releases. Instead, all eyes will be on US data today as there will be flurry of releases before the Thanksgiving holiday period starting tomorrow.

This article was written by Justin Low at www.forexlive.com.