NZD/USD climbs to 0.6415 area, back closer to over 1-month tops set on Tuesday
- US-China trade optimism helped limit the early modest downtick.
- Sliding US bond yields capped the USD and remained supportive.
The NZD/USD pair built on its steady intraday move up and is currently placed at the top end of its daily trading range, around the 0.6415-20 region.
The pair extended previous session's pullback from over one-month tops and weakened further during the Asian session on Friday amid a slight deterioration in the global risk sentiment, which tends to drive flows away from perceived riskier currencies – like the Kiwi.
Trade optimism remains supportive
However, optimism over some progress reported in the US-China trade talks extended some support and helped limit deeper losses. The pair quickly reversed an early dip to an intraday low level of 0.6386 and seemed rather unaffected by a modest US Dollar uptick.
Meanwhile, a fresh leg of a downfall in the US Treasury bond yields, coupled with firming market expectations that the Fed will cut interest rates again at its upcoming monetary policy meeting on October 29-30 capped the USD gains and remained supportive.
In absence of any major market-moving economic releases from the US, the uptick lacked any obvious fundamental catalyst. Hence, it will now be interesting to see if the pair is able to capitalize on the positive move or struggles to make it through the 0.6430-40 supply zone.
Technical levels to watch
Author
Haresh Menghani
FXStreet
Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.
