NZD/USD climbs back closer to 0.6400 mark, multi-month high ahead of US NFP report


  • NZD/USD gains traction for the fourth successive day amid the prevalent USD selling bias.
  • The Fed’s dovish pivot keeps the US bond yields depressed and weighs on the greenback.
  • The cautious market mood could cap the risk-sensitive Kiwi ahead of the US NFP report.

The NZD/USD pair attracts fresh buying on the last day of the week and maintains its bid tone through the early European session. This marks the fourth straight day of a positive move and lifts spot prices closer to the highest level since mid-August touched on Thursday. Bulls now await a sustained strength beyond the 0.6400 mark amid the prevalent US Dollar selling bias.y

The USD Index, which measures the greenback's performance against a basket of currencies, languishes near a multi-month low amid the recent dovish signals from the Federal Reserve officials. In fact, Fed Chair Jerome Powell sent a clear message on Wednesday that the US central bank will soften its stance and said that it was time to slow the pace of interest rate hikes. Apart from this, signs of easing inflationary pressure and sluggish US Treasury bond yields continue to weigh on the greenback.

On Thursday, the US Bureau of Economic Analysis reported that the Personal Consumption Expenditures (PCE) Price Index slowed to 6% YoY in October from 6.3% previous. Adding to this, the annual Core PCE Price Index, the Fed's preferred gauge of inflation, edged down to 5% from 5.2% as expected. The softer data dragged the yield on the benchmark 10-year US government to a nearly two-month low. That said, the cautious mood could limit losses for the safe-haven USD and cap the risk-sensitive Kiwi.

Furthermore, traders also seem reluctant to place aggressive bets and prefer to move to the sidelines ahead of the closely-watched US monthly employment details. The popularly known NFP report, due later during the early North American session, will influence the near-term USD price dynamics. Apart from this, the broader risk sentiment should provide a fresh impetus to the NZD/USD pair. Nevertheless, spot prices remain on track to register gains for the seventh successive week.

Technical levels to watch

NZD/USD

Overview
Today last price 0.6391
Today Daily Change 0.0017
Today Daily Change % 0.27
Today daily open 0.6374
 
Trends
Daily SMA20 0.6131
Daily SMA50 0.5873
Daily SMA100 0.6025
Daily SMA200 0.6292
 
Levels
Previous Daily High 0.64
Previous Daily Low 0.6233
Previous Weekly High 0.629
Previous Weekly Low 0.6087
Previous Monthly High 0.6314
Previous Monthly Low 0.5741
Daily Fibonacci 38.2% 0.6336
Daily Fibonacci 61.8% 0.6297
Daily Pivot Point S1 0.6271
Daily Pivot Point S2 0.6168
Daily Pivot Point S3 0.6103
Daily Pivot Point R1 0.6439
Daily Pivot Point R2 0.6503
Daily Pivot Point R3 0.6606

 

 

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