NZD/USD: jittery price action on the cards, targets 21-D SMA initially

• NZD/USD remains on the backfoot, opening the week below the pivot with eyes on the 21-D SMA.
• Global risk aversion is weighing on NZD/USD which is currently trading at 0.6767, trading between 0.6752 the opening low and 0.6770 the high.

Price action in the bird is choppy as investors weigh up the various risks on the political front as well as general poor sentiment for global growth. US stocks on Friday, following a full day away for the Thanksgiving break on Thursday, had a rough ride, open for just half of the day with the Dow and the S&P500 down 0.7%, and the Nasdaq down 0.5%. Oil prices also collapsed on Friday night, with WTI down 7.7% and Brent down 6.1%, also weighing on the commodity complex and sending the CRB down hard.

Analysts at ANZ forecast jittery price action

"The kiwi finished the week below 68 cents in holiday-thinned trading. With little in the way of global data this week, markets will be focused on policy and politics, with key Fed speeches, FOMC minutes, and the G20 meeting. All up, we think markets will remain jittery,"

analysts at ANZ Bank New Zealand argued. 

NZD/USD levels

• Support 0.6700 
• Resistance 0.6890

A very strong employment report earlier in the month had given flight to the bird where the 0.68 handle was accomplished and bulls managed to get through the 38.2% retracement fibo (at 0.6810) of the 2018 sell-off from 0.7441 highs to 0.6427 2018 lows. However, bulls failed to get past the 0.6880 area guarding 0.6929, as the 50% fibo of the 2018 range. The pair now finds itself below the 10-D SMA, the pivot and now bears have eyes on the 21-D SMA at 0.6729.