NZD/USD slips to fresh session lows amid broad based USD recovery

• NZD/USD is reporting losses this Monday morning amid US Dollar recovery rally.
• Greenback’s bounce is likely associated with the US-Mexico deal.

NZD/USD’s pullback from Friday’s 5.5-week highs has gathered steam in Asia amid broad-based US Dollar recovery.

At press time, the currency pair is trading at the session low of 0.6644, having high of 0.6681 earlier today.

The American dollar is bid against most majors, as represented by the Dollar Index, which is currently trading at 96.74 - up from Friday’s low of 96.46. The pullback in gold - a hard currency - seems to be helping the USD higher against majors.

The yellow metal is currently trading at $1,330, having hit a 14-month high of $1,348 on Friday.

The pullback in gold and the resulting broad-based USD strength could be associated with the US President Trump’s decision to suspend tariff plan on Mexican goods.

The Kiwi, therefore, could extend the decline to the confluence of the 50- and 5-day moving averages, currently located at 0.6630 - more so, as China’s data released earlier today showed weakening domestic demand. The imports fell in both CNY and USD terms, while exports ticked up, pushing the trade surplus higher to $41.65 billion and ¥279.120 billion.

Pivot levels