NZD/USD climbs to fresh session tops, 0.7200 back in sight


  • NZD/USD caught some fresh bids on Friday and reversed a major part of the overnight slide.
  • Stability in the markets benefitted the perceived riskier kiwi amid a subdued USD demand.
  • Elevated US bond yields helped limit the USD losses and might cap the upside for the major.

The NZD/USD pair edged higher through the early part of the European session and refreshed daily tops, around the 0.7180-85 region in the last hour.

The pair managed to regain positive traction on the last day of the week and has now reversed a major part of the overnight retracement slide from the highest level since June. Reports that China Evergrande made funds available for a bond coupon to a trustee account helped ease concerns about a credit crunch in China's real estate sector. This, in turn, undermined the safe-haven US dollar and acted as a tailwind for the perceived riskier kiwi.

Meanwhile, the downside for the USD remains cushioned, at least for the time being, amid elevated US Treasury bond yields.  It is worth recalling that the yield on the benchmark 10-year US government bond rose to the highest level since May 13, around 1.683% on Thursday amid expectations for an early policy tightening by the Fed. Investors seem convinced that the Fed would be forced to adopt a more aggressive policy response to contain stubbornly high inflation.

The speculations were reinforced by comments from Fed Governor Christopher Waller, saying that the US central bank may have to act faster if inflation remains too high. Adding to this, Atlanta Fed President Raphael Bostic said that he has pencilled in a rate increase in the late third, maybe early fourth quarter of 2022. That said, rising bets for an additional interest rate hike by RBNZ remained supportive of the bid tone surrounding the NZD/USD pair.

Market participants now look forward to the US economic docket, highlighting the release of the flash Manufacturing and Services PMI prints later during the early North American session. This, along with the US bond yields, will influence the USD price dynamics and provide some impetus to the NZD/USD pair. Traders will further take cues from the broader market risk sentiment for some short-term opportunities around the major.

Technical levels to watch

NZD/USD

Overview
Today last price 0.7185
Today Daily Change 0.0029
Today Daily Change % 0.41
Today daily open 0.7156
 
Trends
Daily SMA20 0.6998
Daily SMA50 0.7016
Daily SMA100 0.7021
Daily SMA200 0.7101
 
Levels
Previous Daily High 0.7219
Previous Daily Low 0.714
Previous Weekly High 0.7078
Previous Weekly Low 0.6912
Previous Monthly High 0.7171
Previous Monthly Low 0.6859
Daily Fibonacci 38.2% 0.717
Daily Fibonacci 61.8% 0.7189
Daily Pivot Point S1 0.7124
Daily Pivot Point S2 0.7093
Daily Pivot Point S3 0.7045
Daily Pivot Point R1 0.7203
Daily Pivot Point R2 0.7251
Daily Pivot Point R3 0.7282

 

 

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. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Feed news

Latest Forex News


Latest Forex News

Editors’ Picks

EUR/USD trades below 1.1300 after German inflation data

EUR/USD continues to trade in the negative territory below 1.1300 as the American session gets underway. The data from Germany showed on Friday that the Harmonized Index of Consumer Prices, the ECB's preferred gauge of inflation, climbed to 6% on a yearly basis in November, compared to the market expectation of 5.4%.

EUR/USD News

GBP/USD extends slump below the 1.3300 mark

GBP/USD trades near its 2021 low in the 1.3290 region, as demand for the greenback picked up pace during US trading hours. Market participants are digesting the latest covid-related news, somehow less concerned about its effects on economic developments. 

GBP/USD News

Gold: En route to challenge the November monthly low

Spot gold gapped lower at the weekly opening. Concerns related to the new coronavirus variant named Omicron hit hard the markets on Friday, although thinned conditions may have exacerbated the reaction to the news, as the US celebrated Thanksgiving on Thursday.

Gold News

Ethereum breaks out of bullish pennant, targets new all-time high at $5,000

Ethereum price lost 14% of its market value in turmoil on Friday. ETH is on the path to recovery with a bullish break out of the pennant. Expect a rally to emerge as tailwinds attribute to new all-time highs.

Read more

Cyber Monday 2021 Discounts!

Glued to your trading screen on Cyber Monday? Upgrade your skills by signing up for FXStreet’s Premium service, offered at a discount of up to 50%. Fellow traders have already taken advantage of Black Friday profits. What about you? 

Subscribe now!

Forex MAJORS

Cryptocurrencies

Signatures