NZD/USD consolidates in a range near weekly tops, comfortable above 0.6300 handle

  • The incoming positive trade-related headlines helped gain some traction on Thursday.
  • The prevalent USD selling bias, amid Fed rate cut expectations, remained supportive.
  • Sustained move beyond the 0.6335 resistance zone needed for bullish confirmation.

The NZD/USD pair extended its sideways consolidative price action through the Asian session on Friday and remained confined in a narrow trading band, just below weekly tops set in the previous session.
Following an early dip to one-week lows, the pair staged a goodish rebound on Thursday and was being supported by optimism over US-China trade talks. The top negotiators from both sides began negotiations on Thursday and signalled that they may reach a partial deal, which could lead to a temporary truce on tariffs and underpinned demand for perceived riskier currencies – like the Kiwi.

Trade optimism continues to underpin

Apart from the positive trade-related developments, the prevalent US Dollar selling bias further collaborated to the pair's mildly positive tone through the Asian session on Friday. Despite a goodish follow-through pickup in the US Treasury bond yields, the Greenback remained on the defensive amid firming expectations that the Fed will eventually cut interest rate at its upcoming meeting in October.
Thursday's softer US consumer inflation figures, showing that the headline CPI was unchanged in September and the core CPI rose by just 0.1% from the previous month, reinforced prospects for a further monetary policy easing by the Fed. Meanwhile, data released on Friday showed that New Zealand’s manufacturing activity shrank for a third month in September and seemed to be the only factors capping gains.
It will now be interesting to see if the pair is able to capitalize on the overnight positive move or once again meets with some fresh supply near the 0.6335 resistance zone. Market participants now look forward to the US economic docket – featuring the release of Prelim UoM Consumer Sentiment – for some short-term trading impetus later during the early North-American session.

Technical levels to watch


Today last price 0.6324
Today Daily Change 0.0004
Today Daily Change % 0.06
Today daily open 0.632
Daily SMA20 0.6302
Daily SMA50 0.6368
Daily SMA100 0.6498
Daily SMA200 0.6626
Previous Daily High 0.6336
Previous Daily Low 0.6276
Previous Weekly High 0.6338
Previous Weekly Low 0.6204
Previous Monthly High 0.6452
Previous Monthly Low 0.6249
Daily Fibonacci 38.2% 0.6313
Daily Fibonacci 61.8% 0.6299
Daily Pivot Point S1 0.6285
Daily Pivot Point S2 0.6251
Daily Pivot Point S3 0.6225
Daily Pivot Point R1 0.6345
Daily Pivot Point R2 0.6371
Daily Pivot Point R3 0.6405



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.

Feed news

Latest Forex News

Editors’ Picks

EUR/USD flirts with 34-month lows amid after poor German figures, amid coronavirus fears

EUR/USD is trading just above 1.0820, the lowest since 2017, as the coronavirus outbreak is taking its economic toll on Apple among others. The German ZEW Economic Sentiment missed expectations with 8.7 points.


GBP/USD remains depressed below 1.30 as UK jobs figures miss expectations

GBP/USD is trading below 1.30 after UK wages decelerated to 2.9% yearly in December, worse than expected. Brexit concerns are also weighing and coronavirus headlines are eyed.


Forex Today: Coronavirus takes a bite from the apple, Gold gains, Bitcoin bounces

The coronavirus outbreak's economic impact is growing as Apple, the iPhone maker has issued a warning that it is unable to meet its guidance due to production and issues and closed stores in China. The tech giant's announcement has been weighing on the market mood, pushing gold and the yen higher. 

Read more

Gold: Positive beyond six-week-old falling trendline

Gold prices take the bids above $1585, +0.35%, during the pre-European trading on Tuesday. The yellow metal recently broke a downward sloping trend line stretched from January 08. Early-month top on the buyer’s radar.

Gold News

FXStreet launches Real-Time Trading Signals

FXStreet Signals offers access to explanatory live webinars, real-time notifications when signals are triggered and exclusive membership to the company’s Telegram group, where users get direct guidance by our analysts and get room to discuss and interact.

More info