NZD/USD tops $0.7400 near daily highs as stock rise
|- The NZD/USD is gradually gaining ground, climbing above the $0.7400 level.
- Rising US stocks and a calmer market mood result in US Dollar selling.
- The Business NZ PMI is next up for the New Zealand dollar.
The NZD/USD is advancing to higher ground, getting close to $0.7400, just below $0.7411, the top of the day. The increase goes hand in hand with shares on Wall Street. After a modest open higher at first, the S&P500 is about 1% higher. The risk-on sentiment is positive for the NZD that also took advantage of the US Dollar sell-off on Wednesday.
The kiwi dollar also received an early boost from Fitch. The credit rating agency confirmed New Zealand's rating, AA, and the outlook remains stable.
Earlier, the US released a big bulk of economic indicators, and the most important figures were positive. The Producer Price Index rose to 2.7% YoY in January, above 2.5% that had been forecast. Core PPI increased by 2.2%, also exceeding expectations for an annual advance of 2.1%.
Other figures were mixed. Weekly Jobless Claims came out within projections, at 230K. Industrial Output dropped by 0.1%, worse than a rise of 0.2% that was on the cards.
In New Zealand, Business NZ will later release its Purchasing Managers' Index for January. A score of 51.2 was seen in December.
On Friday, the US economic calendar features Housing Starts, Building Permits, and the Consumer Sentiment Index by the University of Michigan. Nevertheless, the markets could move on the sentiment rather than a surprise, good or bad, in the data.
NZD/USD Technical Levels
The pair may face resistance at $0.7420, the high point on January 31st. A break may lead the way towards $0.7436 (Jan. 24 and also Sep. 20 high) ahead of the round number of 0.75.
On the downside, the first support is at the daily low of $0.7363. A downside move below this point opens the door to $0.7279 (Jan. 30 troughs) and afterward, $0.7176 (Feb. 8 low).
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