- NZD/USD stuck in a sideways range for the week.
- Eyes stay on US yields, the Fed and the US dollar in decline.
At the time of writing, NZD/USD is trading at 0.7051 having travelled between a low of 0.7045 and a high of 0.7058, flat on the day so far and back to where the pair was at the start of the week.
Initial claims for the week ended 3 April ticked higher to 744k vs 728k. The data also showed that initial claims for pandemic unemployment support, offered to people who are not typically eligible for jobs support, rose to 152k vs 237k the prior week.
The worse-than-expected initial jobless claims highlighted the economy's bumpy recovery from the pandemic.
''In the same reporting week last year, initial claims hit a pandemic high of over 6 million. Continuing claims were 3.7m compared with a pandemic high last May of over 23m,'' analysts at ANZ Bank explained.
''The data indicate the remarkable recovery in economic activity owing to the huge stimulus from both government and the Fed.
However, the initial claims data also underline that the labour market still has a long way to go to be fully healed. Prior to the pandemic, they were hovering just above 200k.''
The combo of Powell and the data hurt both yields and the US dollar which ended down 0.37% by the closing bell as measured by the DXY.
In afternoon New York trading, the US 10-year Treasury yield was down at 1.6210% from 1.654% on Wednesday.
Kiwi bulls benefit either way
Meanwhile, the analysts at ANZ argued that stronger US growth should benefit all global cyclical assets, including the NZD and Asian currencies, and this appears to be the theme now at play.
''The local economic picture is good (higher commodity prices, trans-Tasman bubble). Even if it is not exceptional, it should support the NZD more than others during a cyclical risk uplift.''
|Today last price||0.7053|
|Today Daily Change||0.0041|
|Today Daily Change %||0.58|
|Today daily open||0.7012|
|Previous Daily High||0.7069|
|Previous Daily Low||0.6996|
|Previous Weekly High||0.7055|
|Previous Weekly Low||0.6945|
|Previous Monthly High||0.7308|
|Previous Monthly Low||0.6943|
|Daily Fibonacci 38.2%||0.7024|
|Daily Fibonacci 61.8%||0.7041|
|Daily Pivot Point S1||0.6982|
|Daily Pivot Point S2||0.6953|
|Daily Pivot Point S3||0.6909|
|Daily Pivot Point R1||0.7055|
|Daily Pivot Point R2||0.7099|
|Daily Pivot Point R3||0.7128|
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.