NZD/USD remains stuck in a 70-pip range

The NZD/USD pair continues to trade in the range of 0.7230-0.73 amid improved risk appetite on Deutsche Bank news and rise in Dec Fed rate hike bets.

Dec Fed rate hike probability above 50%

As per the CME data, the probability of the December rate hike now stands at 55.7% as opposed to 48% seen last week. This could have weighed over the Kiwi in Asia. Meanwhile, Friday’s rise to near 0.73 handles was due to improvement in the risk appetite after reports hit the wires that US Department of Justice (DOJ) trimmed the fine imposed on Deutsche Bank.

Moreover, the easing Deutsche Bank uncertainty also means increased prospects of Fed rate hike. Having clocked a high of 0.72980, the NZD/USD pair currently trades around 0.7265 levels.

NZD/USD Technical Levels

A violation at 0.7289 (Asian session high) could yield a test of supply around 0.7312 (rising trend line hurdle). A violation there would expose 0.7331 (Sep 27 high). On the lower side, breach of 0.72-0.7230 (strong support zone since mid August) would shift risk in favor of a much deeper retracement for 0.7054 (May 3 high) and 0.70 (zero figure) levels.