NZD/USD advances to fresh weekly high above 0.66
|- The greenback struggles to find demand in the NA session.
- Consumer confidence in the U.S. plummets to new 11-month low.
The NZD/USD pair gained traction in the NA session and extended its gains to a fresh 7-ay high at 0.6615. At the moment, the pair is trading a couple of pips below that level, adding 0.35% on the day.
The pair's recovery on Friday seems to be a product of a broad-based USD weakness. Today's only data from the U.S. showed that the consumer confidence eased to its worst level since September 2017. The headline confidence index of the University of Michigan's Consumer Sentiment Survey came in at 95.3 compared to the previous reading of 97.9 and fell short of the market expectation of 98. The publication highlighted that rising prices were the primary reason behind the weakening sentiment.
The US Dollar Index, which closed the previous day at 96.60, was last seen at 96.23, losing 0.38% on the day.
In the meantime, major equity indexes in the U.S. stay in the positive territory on Friday, pointing out to higher risk appetite in the markets that help risk-sensitive currencies such as the NZD.
Technical outlook
With a weekly close above 0.6610/15 (Aug. 14 high/daily high) the pair could continue its march north towards 0.6690 (Aug. 9 high) and 0.6765 (50-DMA). On the downside, supports are located at 0.6575 (daily low), 0.6500 (psychological level) and 0.6460 (Feb. 2, 2016, low).
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