- NZD/USD stays bid around monthly top marked earlier in the week.
- US dollar fails to rebound as traders fear US economic slowdown, Fed’s fixed path of 50 bps rate hikes.
- Market sentiment dwindles on headlines from China, Russia.
NZD/USD prints the biggest daily gains in four days as bulls poke the monthly high surrounding 0.6500 during Friday’s Asian session. In doing so, the Kiwi pair cheers broad US dollar weakness while paying a little heed to softer China data, as well as geopolitical concerns relating to Russia and Taiwan.
That said, the US Dollar Index (DXY) refreshes the monthly low at the 101.43 level as market participants welcomed the lack of uncertainty over the Fed’s next move with zeal. Also weighing on the greenback could be the recently downbeat US data.
The US preliminary Q1 2022 Annualized GDP eased to -1.5%, below -1.4% prior and -1.3% forecasts, whereas the Pending Home Sales slumped in April, to -3.9% versus -2.0% forecast.
Elsewhere, China’s Industrial Profits for the January-April period dropped to 3.5% versus 8.5% prior whereas the figures for April slumped to -8.5% versus 12.2% previous gains.
It should be noted that risk appetite remains mixed and should have weighed the NZD/USD prices but does not. Among the risk-negative negative catalysts are headlines suggesting the US-Taiwan ties, which China dislikes. On the same line are the fears of a global recession. Additionally, Russia’s refrain from stepping back and Ukraine’s readiness to fight more also keeps weighing on the sentiment.
Amid these plays, the US 10-year Treasury yields remained indecisive around 2.75% while the S&P 500 Futures print mild losses around 4,050, down 0.10% intraday at the latest.
Looking forward, the US Dollar Index weakness and mixed catalysts may keep NZD/USD sellers hopeful ahead of the US Core Personal Consumption Expenditure (PCE) Price Index for April, expected at 4.9% YoY versus 5.2% prior.
Read: US Core PCE Preview: Why there is room for a dollar-lifting upside surprise
Technical analysis
Sustained trading beyond the two-week-old rising trend line, around 0.6410, directs NZD/USD buyers towards the 0.6565-70 resistance area comprising the monthly high and the 50-day EMA.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
USD/JPY jumps above 156.00 on BoJ's steady policy
USD/JPY has come under intense buying pressure, surging past 156.00 after the Bank of Japan kept the key rate unchanged but tweaked its policy statement. The BoJ maintained its fiscal year 2024 and 2025 inflation forecast, disappointing the Japanese Yen buyers.
AUD/USD consolidates gains above 0.6500 after Australian PPI data
AUD/USD is consolidating gains above 0.6500 in Asian trading on Friday. The pair capitalizes on an annual increase in Australian PPI data. Meanwhile, a softer US Dollar and improving market mood also underpin the Aussie ahead of the US PCE inflation data.
Gold price keeps its range around $2,330, awaits US PCE data
Gold price is consolidating Thursday's rebound early Friday. Gold price jumped after US GDP figures for the first quarter of 2024 missed estimates, increasing speculation that the Fed could lower borrowing costs. Focus shifts to US PCE inflation on Friday.
Stripe looks to bring back crypto payments as stablecoin market cap hits all-time high
Stripe announced on Thursday that it would add support for USDC stablecoin, as the stablecoin market exploded in March, according to reports by Cryptocompare.
US economy: Slower growth with stronger inflation
The US Dollar strengthened, and stocks fell after statistical data from the US. The focus was on the preliminary estimate of GDP for the first quarter. Annualised quarterly growth came in at just 1.6%, down from the 2.5% and 3.4% previously forecast.