NZD/USD rebounds from four-week lows, sill under 0.6300

• Kiwi trims losses versus US Dollar as DXY retreats.
• Wall Street turns negative after first minutes of trading.
• NZD/USD off lows, moving without clear direction.

The NZD/USD rebounded after hitting the lowest level since late November at 0.6199, climbing to 0.6285. The rebound lost strength as US markets turned negative after the initial half-hour of regular trading on Wall Street.

The Kiwi is still in negative for the day versus the Dollar, down 50 pips. The NZD/USD is attempting to recover 0.6250/60, a key technical level. If it is unable to do, the bearish pressure could return. Support levels are seen at 0.6230 and then 0.6200.

On the contrary, if NZD/USD consolidates above 0.6280, it would set the attention on the next resistance seen around 0.6310.

Dollar of lows, but still not giving up

The greenback lost momentum but so far it has not shown a conviction of a reversal. The decline so far looks like a correction and it could resume the upside, particularly if US equity prices remain in red. The DXY is up by 0.85%, off highs at 104.40. Earlier it reached at 104.85, the highest level since December 20.  

Economic data from the US showed the S&P Global Manufacturing Index at 46.2 in December, unchanged from the flash reading. Construction spending rose in November by 0.2% against expectations of a 0.4% slide. On Wednesday, the ISM manufacturing is due and the Federal Reserve will publish the minutes of the latest FOMC meeting.

The GDT Price Index dropped by 2.8% versus market expectations of a 0.6% increase from the latest December auction.

Technical levels