NZD/USD Price Stuck in Bearish Trend Amid Oil Price Concerns
The New Zealand dollar (NZD/USD) price rebounded towards 0.5850 on Thursday, but its trading range was limited by a bearish trend and subdued risk appetite.
Risk aversion remained in place due to concerns over oil prices, which have been near $100 a barrel following tanker attacks earlier in the week. This situation can weigh on New Zealand's oil-importing economy and cap rallies in the NZD/USD pair.
The US Dollar also stayed under pressure after disappointment over the US Treasury's bond buyback programme, due to begin on Monday, which limited further NZD depreciation.
A break above the 200-day simple moving average at 0.5855 would shift focus to the 4 September high near 0.5900, then late-August levels around 0.6000. Conversely, a drop below the 2 September low at 0.5802 would open 0.5765 and 0.5740, with a measured target at 0.5626.