NZD/USD rebounds from 1-week lows, retakes 0.6300 mark and beyond
|- Investors looked past Wednesday’s not so dovish FOMC meeting minutes.
- The incoming positive trade-related headlines helped bounce off lows.
- Thursday key focus will remain on US CPI figures and US-China trade talks.
The NZD/USD pair built on its goodish intraday bounce from one-week lows and climbed to fresh session tops, around the 0.6310-15 region in the last hour.
The pair initially extended the overnight rejection slide from the 0.6325-30 supply zone, further weighed down by not so dovish FOMC meeting minutes, and dropped to an intraday low level of 0.6277 during the Asian session on Thursday.
Trade optimism provides a goodish lift
However, the incoming positive trade-related headlines remained supportive of the prevalent risk-on flows and helped limit further downside, rather attracted some dip-buying interest around perceived riskier currencies - like the Kiwi.
Adding to the overnight report that China was open to a partial deal, the US was reported considering entering into a currency agreement with China as a part of a partial trade deal and provided an additional boost to the global risk sentiment.
On the other hand, the US Dollar struggled to gain any meaningful traction and remained on the defensive amid the ongoing slide in the US Treasury bond yields, which further collaborated to the pair's solid intraday rally of around 35-40 pips.
The pair has now moved back within the striking distance of the mentioned barrier as market participants look forward to Thursday's important release of the latest US consumer inflation figures for some meaningful trading impetus.
This coupled with the resumption of the crucial high-level US-China trade negotiations will play a key role in driving the broader market risk sentiment and help determine the next leg of a directional move for the major.
Technical levels to watch
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