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NZD/USD slips below 200-day SMA as risk-off mood deepens

NZD/USD hit a session low of 0.5836 and trades around 0.5843, pressured by Middle East tensions and higher oil prices.

Reported · Written up by our desk · Major Pairs

FXStreet reports the New Zealand dollar extended losses versus the US dollar on Tuesday as sentiment turned risk-off amid escalating tensions in the Middle East.

The NZD/USD slid away from the 0.5900 area seen on Friday, reaching session lows at 0.5836 and moving below the 200-day simple moving average around 0.5850, with the pair last quoted near 0.5843.

FXStreet links the pressure on the NZD to concerns that oil could stay elevated, noting Brent is above $97.00 per barrel and has risen nearly 9% so far in September, with limited traffic through the Strait of Hormuz.

The outlet also points to weaker support from data in China, where an increased trade surplus in August came with imports missing expectations, leaving the risk around a potential bearish head and shoulders neckline between 0.5800 and 0.5820.

Latest closeBrent $95.32 ▲0.7%

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