NZD/USD bulls take a bite out of both sides of the fundamentals

  • 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. 

The story of the day overnight stayed with the US Treasury yields once again that were pressured due poor data to the ongoing dovish comments from Federal Reserve Chair Jerome Powell and

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
Daily SMA20 0.7079
Daily SMA50 0.7169
Daily SMA100 0.7137
Daily SMA200 0.6893
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.

Feed news

Get Weekly Crypto trade ideas!  
Empower yourself with the best market insights

Join FXStreet Premium!    

Latest Forex News

Latest Forex News

Editors’ Picks

EUR/USD slips below 1.2050 amid dollar strength

EUR/USD is trading below 1.2050, losing some of its gains as the dollar shrugs off the fresh drop in yields and rises. European regulators said the benefits of J&J's vaccine outweigh the risks.


GBP/USD retreats from 1.40 despite upbeat UK job figures

GBP/USD is extending its falls after retreating from 1.40 as the dollar edges higher. Earlier, the UK reported a drop in the unemployment rate to 4.9%, better than expected. The Claimant Count Change also beat estimates with 10.1K. 


XAU/USD tests key Fibo resistance at $1,775

XAU/USD rebounds after closing in the negative territory on Monday. 10-year US Treasury bond yield is edging lower on Tuesday. Additional gains are likely if gold manages to clear $1,775 resistance.

Gold News

Ethereum price on cusp of massive breakout if key level holds

Ethereum price had a significant 23% correction in the past week but holds above a key support level on the 12-hour chart. The digital asset still has robust on-chain metrics supporting it and aims for a rebound.

Read more

S&P 500 (SPX) Update: Equity markets take a well deserved breather, crypto stocks slide

Equity markets took a much-needed break from setting record highs on Monday. Tesla suffered a steep 5% fall after reports of a crash with no one at the wheel. Have a Coke and a smile was up 1% as KO smashed earnings estimates.

Read more