NZD/USD climbs to fresh monthly highs, closes in on 0.6700

NZD/USD is rising for the fourth straight day on Thursday.
Broad-based USD weakness helps NZD/USD preserve its bullish momentum.
Focus shifts to key macroeconomic data releases from the US.

Eren Sengezer FXStreet

The NZD/USD pair posted small daily gains on Thursday and extended its advance to a fresh monthly high of 0.6694. As of writing, the pair was up 0.77% on a daily basis at 0.6688.

DXY plummets below 93.00 on Friday

The broad-based selling pressure surrounding the greenback seems to be providing a boost to NZD/USD on Friday. After FOMC Chairman Jerome Powell announced that the Fed will target average inflation as its new strategy, the US Dollar Index (DXY) fluctuated in a wide range, suggesting that investors struggled to make up their mind with respect to what that means for the USD.

However, the DXY turned south and slumped a 10-day low of 92.28 on Friday and was last seen losing 0.67% on the day at 92.37. Commenting on the potential impact of the Fed's new strategy on the USD, "this poses a challenge for the USD from a cyclical perspective and gives more credence to chip away at the USD's longstanding overvaluation," said TD Securities analysts. "Tactically, USD shorts are deeply entrenched, but that doesn't mean it is due for a reversal."

Later in the day, Personal Spending, Personal Income and Personal Consumption Expenditures (PCE) Price Index data from the US will be looked upon for fresh impetus. However, these readings are unlikely to trigger a significant market reaction and the USD seems to be looking to finish the week on the back foot.

Technical levels to watch for

NZD/USD

Overview
Today last price	0.6685
Today Daily Change	0.0046
Today Daily Change %	0.69
Today daily open	0.6639

Trends
Daily SMA20	0.6588
Daily SMA50	0.6564
Daily SMA100	0.637
Daily SMA200	0.6376

Levels
Previous Daily High	0.6675
Previous Daily Low	0.66
Previous Weekly High	0.6652
Previous Weekly Low	0.6488
Previous Monthly High	0.6716
Previous Monthly Low	0.644
Daily Fibonacci 38.2%	0.6647
Daily Fibonacci 61.8%	0.6629
Daily Pivot Point S1	0.6601
Daily Pivot Point S2	0.6563
Daily Pivot Point S3	0.6526
Daily Pivot Point R1	0.6676
Daily Pivot Point R2	0.6713
Daily Pivot Point R3	0.6752

Author

Eren Sengezer

FXStreet

As an economist at heart, Eren Sengezer specializes in the assessment of the short-term and long-term impacts of macroeconomic data, central bank policies and political developments on financial assets.

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