NZD/USD drops below 200-day MA

• NZD/USD fell below 200-day MA yesterday, despite the rise in GDT price index. 
• Stock market rally likely put a bid under the greenback.

The NZD/USD pair is currently trading at 0.6762, having clocked a high and low of 0.6781 and 0.6755 earlier today.

The currency pair found acceptance below the 200-day moving average (MA) yesterday, weakening the immediate bullish prospects even though the GDT price index jumped 4.2 percent marking a two-month winning streak.

The US dollar picked up a bid yesterday, possibly tracking the gains in the US stock markets. The Dow Jones Industrial Average (DJIA) added 141 points or 0.59 percent as sentiment improved after banks published upbeat quarterly results.

Further, a bounce in the USD/CNH pair (offshore yuan) may have played a role in pushing the greenback higher across the board. Moreover, the Sino-US trade tensions have established Chinese yuan as an anchor for the global markets.

Looking ahead, the NZD could continue to track Chinese yuan and the sentiment in the global stock markets.

NZD/USD Technical Levels