NZD/USD: Bulls look to build on momentum beyond 0.7200, focus remains on US data


  • NZD/USD gained traction for the second straight day amid some fresh USD selling bias.
  • Dovish Fed expectations, sliding US bond yields, positive risk tone undermined the buck.
  • Investors now look forward to the US Retail Sales figures for a fresh directional impetus.

The NZD/USD pair climbed to two-day tops during the first half of the European session, with bulls looking to extend the momentum further beyond the 0.7200 mark.

The pair built on the previous day's rebound from the 0.7135 region, or over one-week lows and gained some follow-through traction on the last trading day of the week. This marked the second consecutive day of a positive move and was sponsored by the emergence of some fresh selling around the US dollar.

The USD struggled to capitalize on this week's positive move, instead met with some fresh supply amid the Fed's stubbornly dovish stance. A slew of Fed officials reiterated that price pressures would prove transitory and is unlikely to prompt an immediate shift in the US central bank's positioning.

Investors now seem convinced that the Fed would keep interest rates low for a longer period. This was reinforced by the ongoing decline in the US Treasury bond yields. Apart from this, a fresh leg up in the equity markets further undermined the safe-haven USD and benefitted the perceived riskier kiwi.

Moving ahead, the focus now shifts to the US economic docket, highlighting the release of monthly Retail Sales figures and Prelim Michigan Consumer Sentiment. The data will be scrutinized for guidance on whether the upward pressure on prices will persist, which will influence Fed rate expectations.

This, along with the US bond yields, will play a key role in driving the USD in the near term. Apart from this, traders will further take cues from the broader market risk sentiment for some short-term trading opportunities around the NZD/USD pair.

Technical levels to watch

NZD/USD

Overview
Today last price 0.7199
Today Daily Change 0.0030
Today Daily Change % 0.42
Today daily open 0.7169
 
Trends
Daily SMA20 0.7207
Daily SMA50 0.7137
Daily SMA100 0.7171
Daily SMA200 0.6967
 
Levels
Previous Daily High 0.7195
Previous Daily Low 0.7134
Previous Weekly High 0.7301
Previous Weekly Low 0.7115
Previous Monthly High 0.7287
Previous Monthly Low 0.6945
Daily Fibonacci 38.2% 0.7172
Daily Fibonacci 61.8% 0.7157
Daily Pivot Point S1 0.7137
Daily Pivot Point S2 0.7105
Daily Pivot Point S3 0.7076
Daily Pivot Point R1 0.7198
Daily Pivot Point R2 0.7227
Daily Pivot Point R3 0.7259

 

 

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