NZD/USD consolidates in a range, holds comfortably above 0.6800 amid thin trading volumes


  • Easing Omicron fears continued lending some support to the perceived riskier kiwi.
  • A modest USD strength held back bulls from placing fresh bets and capped NZD/USD.

The NZD/USD pair lacked any firm directional bias on Friday and remained confined in a range, around the 0.6825-30 region through the early European session.

A combination of diverging forces failed to provide any meaningful impetus to the NZD/USD pair and led to subdued/range-bound price action on the last trading day of the year. The underlying bullish sentiment in the financial markets continued acting as a tailwind for the perceived riskier kiwi. That said, a modest US dollar strength acted as a headwind and kept a lid on any meaningful gains.

The global risk sentiment remained well supported by the latest optimism over signs that the Omicron variant might be less severe than feared and is unlikely to derail the economic recovery. This, to a larger extent, helped offset concerns about the continuous surge in new COVID-19 cases and boosted investors' sentiment, which was evident from the recent runup in the global equity markets.

Meanwhile, the greenback gained some traction for the second successive day and was underpinned by Thursday's upbeat US macro data. In fact, the US Initial Jobless Claims fell more than anticipated, to 198k in the week ended December 24 – marking the lowest level since 1969. Separately, the Chicago PMI also surpassed expectations and rose to 63.1 for the current month from 61.8 in November.

This, in turn, held back traders from placing aggressive bullish bets around the NZD/USD pair and capped the upside. The mixed fundamental backdrop warrants some caution before positioning for the near-term direction amid absent relevant market-moving economic data and thin trading volumes on New Year’s Eve.

Technical levels to watch

NZD/USD

Overview
Today last price 0.6834
Today Daily Change 0.0001
Today Daily Change % 0.01
Today daily open 0.6833
 
Trends
Daily SMA20 0.6786
Daily SMA50 0.6933
Daily SMA100 0.6974
Daily SMA200 0.7035
 
Levels
Previous Daily High 0.6858
Previous Daily Low 0.6815
Previous Weekly High 0.6891
Previous Weekly Low 0.6702
Previous Monthly High 0.7199
Previous Monthly Low 0.6773
Daily Fibonacci 38.2% 0.6842
Daily Fibonacci 61.8% 0.6831
Daily Pivot Point S1 0.6812
Daily Pivot Point S2 0.6792
Daily Pivot Point S3 0.6769
Daily Pivot Point R1 0.6855
Daily Pivot Point R2 0.6878
Daily Pivot Point R3 0.6898

 

 

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