NZD/USD crawls up to fresh 7-week highs at 0.6175

NZD/USD appreciates for the sixth day in a row to hit 0.6175 high.
The US dollar loses ground after a string of grim US indicators.
The kiwi might be about to take a break after rallying nearly 3% this week.

Guillermo Alcala FXStreet

The New Zealand dollar has been buoyed by USD weakness to tick up above 0.6150 reaching the top range of 0.6100 for the first time since mid-March. With this move, the NZD/USD extends a six-day uptrend from 0.5915 and is on track to a nearly 3% rally this week.

US dollar hit by downbeat macroeconomic figures

The US dollar is dropping across the board on Thursday, with downbeat US indicators increasing investors’ fears about the economic impact of the COVID-19 shutdown. US Personal Consumption has posted the largest decline on record, with a 7.5% fall in March, while the Personal Income contracting 2%. Somewhat later, the Labor Department announced that 3.8% million Americans applied for unemployment benefits on the week of April 25th.

Macroeconomic figures have hurt market sentiment today, triggering declines on US stock markets. Likewise, the Dollar Index, which measures USD value against a basket of the most traded currencies, has dropped to its lowest level in two weeks.

NZD/USD might be reaching a near-term top

Regarding the near-term outlook, FX strategists at UOB suggest that the pair might take a break after reaching 0.6180: “Conditions remain overbought and for today, NZD is unlikely to strengthen much further. In other words, NZD is likely to take a break and consolidate at these higher levels. Expected range for today, 0.6080/0.6145.”

NZD/USD key levels to watch

NZD/USD

Overview
Today last price	0.6149
Today Daily Change	0.0015
Today Daily Change %	0.24
Today daily open	0.6134

Trends
Daily SMA20	0.6011
Daily SMA50	0.6068
Daily SMA100	0.6319
Daily SMA200	0.636

Levels
Previous Daily High	0.6134
Previous Daily Low	0.605
Previous Weekly High	0.6092
Previous Weekly Low	0.5911
Previous Monthly High	0.645
Previous Monthly Low	0.547
Daily Fibonacci 38.2%	0.6102
Daily Fibonacci 61.8%	0.6082
Daily Pivot Point S1	0.6078
Daily Pivot Point S2	0.6022
Daily Pivot Point S3	0.5994
Daily Pivot Point R1	0.6162
Daily Pivot Point R2	0.619
Daily Pivot Point R3	0.6246

Author

Guillermo Alcala

FXStreet

Graduated in Communication Sciences at the Universidad del Pais Vasco and Universiteit van Amsterdam, Guillermo has been working as financial news editor and copywriter in diverse Forex-related firms, like FXStreet and Kantox.

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