• NZD/USD threatens to break above 0.7100 amid upbeat market sentiment.
  • US stocks are rising, weighing on the US dollar.
  • A good New Zealand’s Trade Balance reading can propel the NZD/USD higher.

Earlier in the mid-European session, the pair was trading within a narrow range of 0.7040-0.7058. But once the New York session kicked in, the kiwi rose nearby 0.7100. The NZD/USD is up 1.03% during the day, trading at 0.7083 at the time of writing.

The cause of the move lies in the back of the US dollar.  The US Dollar Index which tracks the buck's performance against six currencies, is down almost half percent, sitting at 93.02 amid a positive market mood. Major global stock indices rose. The S&P 500 and the Dow Jones post gains of 1.24% and 1.54% each in the US. Additionally, China's fears regarding Evergrande, wane as risk appetite improves.

In the US, the Initial Jobless Claims, for the week ending on September 18, increased to 351K, worse than the 320K expected by analysts. Despite the federal pandemic benefits completed on September 6, job applications had not improved, reported employers.

Moreover, the White House has said that it would not extend jobless aid further. However, states across the country can still use pandemic relief funds to assist unemployed citizens.

On Friday, Statistics of New Zealand will release the Trade Balance on a yearly and a monthly basis of August. Additionally, Imports and Exports could also give direction to the NZD/USD during the Asian session.

Meanwhile, in the US economic docket, the New Home Sales for August are expected at 0.7M, trailing the previous month’s reading of 0.708M.

KEY TECHNICAL LEVELS TO WATCH

NZD/USD

Overview
Today last price 0.7083
Today Daily Change 0.0071
Today Daily Change % 1.01
Today daily open 0.7012
 
Trends
Daily SMA20 0.7069
Daily SMA50 0.701
Daily SMA100 0.7069
Daily SMA200 0.7116
 
Levels
Previous Daily High 0.7056
Previous Daily Low 0.6992
Previous Weekly High 0.7151
Previous Weekly Low 0.7025
Previous Monthly High 0.7089
Previous Monthly Low 0.6805
Daily Fibonacci 38.2% 0.7032
Daily Fibonacci 61.8% 0.7016
Daily Pivot Point S1 0.6984
Daily Pivot Point S2 0.6956
Daily Pivot Point S3 0.692
Daily Pivot Point R1 0.7048
Daily Pivot Point R2 0.7084
Daily Pivot Point R3 0.7112

 

 

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