NZD/USD: Bulls keep reins around mid-0.6600 despite sluggish markets

NZD/USD stays positive for a sixth consecutive day, probes one week high around 0.6650.
US dollar weakness helps to ignore downbeat readings of New Zealand’s ANZ-Roy Morgan Consumer Confidence for September.
China’s week-long holidays will join a light calendar elsewhere and the pre-NFP trading lull to restrict short-term market moves.
Noises surrounding the Sino-American tension, US stimulus can offer immediate direction.

Anil Panchal FXStreet

NZD/USD seesaws around 0.6650 so far during the early Asian trading on Friday. The pair recently ignored weaker than the previous reading of New Zealand ANZ-Roy Morgan Consumer Confidence while keep following the US dollar weakness as the main catalysts. Alike other major currencies, the New Zealand dollar (NZD) also surged to near one week high the previous day but has been capped near the top off-late as traders are waiting for the US employment data for September. Also acting as a trading barrier is the one-week long Chinese holiday and a lack of major data.

Stimulus deadlock joins political uncertainty to drag the USD…

Not only, the US policymakers’ inability to break the coronavirus (COVID-19) aid package talks impasse but increasing odds of the government change and US President Donald Trump’s signals of a delay in the election results also weigh on the US currency. Also playing as a negative catalyst for the greenback could be the disappointing print of the US ISM Manufacturing PMI that dropped to 55.4 versus 56.0 prior and 56.3 forecasts in September.

It should also be noted that Politico’s hint towards the escalation in the US-China tussle, Brexit woes and the global COVID-19 conditions add to the market’s imbalance. At home, ANZ-Roy Morgan Consumer Confidence for September dropped from 100.2 prior to 100.00.

While portraying the mixed risk sentiment, S&P 500 Futures struggles to extend the two-day winning streak above 3,350.

Moving on, NZD/USD traders should look for risk catalysts, amid expectedly dull markets, ahead of the key US employment numbers for September for fresh impetus.

Read: Nonfarm Payrolls Preview: Eagerly waiting for an upbeat report

Technical analysis

Unless declining below the 50-day EMA level of 0.6614, NZD/USD sellers are less likely to return. As a result, the quote stays directed towards the previous month’s high near 0.6800 with the 0.6700 acting as a nearby upside barrier.

Additional important lelvels

Overview
Today last price	0.6649
Today Daily Change	31 pips
Today Daily Change %	0.47%
Today daily open	0.6618

Trends
Daily SMA20	0.6657
Daily SMA50	0.6638
Daily SMA100	0.652
Daily SMA200	0.6392

Levels
Previous Daily High	0.6627
Previous Daily Low	0.6569
Previous Weekly High	0.6778
Previous Weekly Low	0.6511
Previous Monthly High	0.6799
Previous Monthly Low	0.6511
Daily Fibonacci 38.2%	0.6605
Daily Fibonacci 61.8%	0.6591
Daily Pivot Point S1	0.6583
Daily Pivot Point S2	0.6547
Daily Pivot Point S3	0.6525
Daily Pivot Point R1	0.6641
Daily Pivot Point R2	0.6663
Daily Pivot Point R3	0.6699

Author

Anil Panchal

FXStreet

Anil Panchal has nearly 15 years of experience in tracking financial markets. With a keen interest in macroeconomics, Anil aptly tracks global news/updates and stays well-informed about the global financial moves and their implications.

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