Following last week's positive closing for the sixth consecutive week, the NZD/USD pair had a quiet start on Monday and consolidated in a 15-pips narrow trading range below the 0.7300 handle.
Last week, the pair regained traction after RBNZ held official cash rates at record lows but sounded less dovish than many investors had expected. This coupled with St. Louis Federal Reserve President James Bullard's remarks that the Fed should hold back from raising interest rates further and see how the economy is progressing, provided an additional boost to the major on Friday and lifted it back closer to the 0.7300 handle.
• NZD/USD: Bullish with potential for a retest of 0.7300 - Westpac
Investors now look forward to the Fed Chair Janet Yellen's scheduled speech on Tuesday for some fresh insights over the central bank's monetary policy outlook. Hence, a modest pick-up in the US Treasury bond yields, which tends to underpin the US Dollar demand, kept a lid on any further up-move for higher-yielding currencies - like the Kiwi.
• USD may struggle to sustain any positive momentum - ANZ
On the economic data front, today's release of durable goods orders from the US, due for release during early NA session, would now be looked upon for some fresh impetus ahead of NZ trade balance data during early Asian session on Tuesday.
Technical levels to watch
Bulls would be eyeing for a decisive break through the 0.7300 handle, above which the pair is likely to aim towards surpassing 4-month highs resistance near 0.7320 region and head towards testing its next resistance near mid-0.7300s.
On the downside, retracement back below 0.7265 level, leading to a subsequent drop below mid-0.7200s, might turn the pair vulnerable to head back towards retesting the 0.7200 handle en-route disappointing NZ GDP-led swing lows support near 0.7185 level.
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.
Recommended content
Editors’ Picks
AUD/USD: A tough barrier remains around 0.6800
AUD/USD failed to maintain the earlier surpass of the 0.6800 barrier, eventually succumbing to the late rebound in the Greenback following the Fed’s decision to lower its interest rates by 50 bps.
NZD/USD advances to near 0.6200 due to risk-on mood, Fed interest rate decision awaited
The NZD/USD pair edges lower to near 0.6200 during the early Asian session on Thursday. The recent GDP data revealed that New Zealand's economy shrank again in the second quarter, suggesting the depths of its economic malaise.
Gold surrenders gains and drops to weekly lows near $2,550
Gold prices reverses the initial uptick to record highs around the $$2,600 per ounce troy, coming under renewed downside pressure and revisiting the $2,550 zone amidst the late recovery in the US Dollar.
Australian Unemployment Rate expected to hold steady at 4.2% in August
The Australian Bureau of Statistics will release the monthly employment report at 1:30 GMT on Thursday. The country is expected to have added 25K new positions in August, while the Unemployment Rate is foreseen to remain steady at 4.2%.
Ethereum could rally to $2,817 following Fed's 50 bps rate cut
Ethereum (ETH) is trading above $2,330 on Wednesday as the market is recovering following the Federal Reserve's (Fed) decision to cut interest rates by 50 basis points. Meanwhile, Ethereum exchange-traded funds (ETF) recorded $15.1 million in outflows.
Moneta Markets review 2024: All you need to know
VERIFIED In this review, the FXStreet team provides an independent and thorough analysis based on direct testing and real experiences with Moneta Markets – an excellent broker for novice to intermediate forex traders who want to broaden their knowledge base.