NZD/USD consolidates gains around 0.7300 in quiet session

NZD/USD touched its highest level since early March at 0.7301 on Friday.
US Dollar Index struggles to erase last week's losses.
Market action is likely to remain subdued in the remainder of the day.

Eren Sengezer FXStreet

The NZD/USD pair rose sharply on Friday and gained more than 100 pips in the previous week. In the absence of significant fundamental drivers, the pair started the new week in a relatively calm manner and seems to have gone into a consolidation phase around 0.7300, where it was up 0.3% on a daily basis.

USD remains on the back foot on Monday

The data published by the US Bureau of Labor Statistics showed on Friday that Nonfarm Payrolls (NFP) in April rose by only 266,000. This reading missed the market expectation of 978,000 by a huge margin and triggered a USD selloff ahead of the weekend. The US Dollar Index continues to have a difficult time finding demand on Monday and was last seen losing 0.1% at 90.12, allowing NZD/USD to stay in the positive territory.

There won't be any macroeconomic data releases from the US and the USD's market valuation is likely to impact NZD/USD's movements.

In the meantime, the S&P 500 Futures are flat on the day, suggesting that Wall Street's main indexes will open near last week's closing levels.

On Tuesday, Electronic Card Retails Sales data from New Zealand will be looked upon for fresh impetus.

Technical levels to watch for

NZD/USD

Overview
Today last price	0.7294
Today Daily Change	0.0016
Today Daily Change %	0.22
Today daily open	0.7278

Trends
Daily SMA20	0.7183
Daily SMA50	0.714
Daily SMA100	0.7166
Daily SMA200	0.6956

Levels
Previous Daily High	0.7301
Previous Daily Low	0.7204
Previous Weekly High	0.7301
Previous Weekly Low	0.7115
Previous Monthly High	0.7287
Previous Monthly Low	0.6945
Daily Fibonacci 38.2%	0.7264
Daily Fibonacci 61.8%	0.7241
Daily Pivot Point S1	0.7221
Daily Pivot Point S2	0.7164
Daily Pivot Point S3	0.7124
Daily Pivot Point R1	0.7318
Daily Pivot Point R2	0.7358
Daily Pivot Point R3	0.7415

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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