NZD/USD eases from multi-day tops, still well bid around 0.6970-75 region

NZD/USD regained positive traction on Friday, albeit lacked any strong follow-through buying.
The risk-on impulse benefitted the perceived riskier kiwi and remained supportive of the uptick.
A pickup in the US bond yields underpinned the USD and capped gains amid COVID-19 jitters.

Haresh Menghani FXStreet

The NZD/USD pair maintained its bid tone through the early European session, albeit has retreated few pips from daily tops and was last seen trading around the 0.6970 region.

Following the previous day's modest slide, the NZD/USD pair managed to regain some positive traction on the last day of the week and touched a four-day high level of 0.6989. The risk-on impulse – as depicted by a generally positive tone around the equity markets – was seen as a key factor that extended some support to the perceived riskier kiwi.

Meanwhile, worries about the economic fallout from the spread of the highly contagious Delta variant of the coronavirus acted as a tailwind for the safe-haven US dollar. Apart from this, a goodish pickup in the US Treasury bond yields further underpinned the greenback. This, in turn, kept a lid on any meaningful upside for the NZD/USD pair, at least for now.

Hence, it will be prudent to wait for some strong follow-through buying before positioning for an extension of this week's recovery move from the 0.6880 region, or the lowest level since November 2020. Market participants now look forward to the US economic docket, featuring the release of the flash PMI prints for some meaningful trading impetus.

This, along with the US bond yields, will influence the USD price dynamics. Traders will further take cues from the broader market risk sentiment to grab some short-term opportunities around the NZD/USD pair.

Technical levels to watch

NZD/USD

Overview
Today last price	0.6968
Today Daily Change	0.0002
Today Daily Change %	0.03
Today daily open	0.6966

Trends
Daily SMA20	0.6991
Daily SMA50	0.7096
Daily SMA100	0.7116
Daily SMA200	0.7084

Levels
Previous Daily High	0.6987
Previous Daily Low	0.6947
Previous Weekly High	0.7046
Previous Weekly Low	0.6917
Previous Monthly High	0.7289
Previous Monthly Low	0.6923
Daily Fibonacci 38.2%	0.6962
Daily Fibonacci 61.8%	0.6972
Daily Pivot Point S1	0.6946
Daily Pivot Point S2	0.6926
Daily Pivot Point S3	0.6906
Daily Pivot Point R1	0.6986
Daily Pivot Point R2	0.7007
Daily Pivot Point R3	0.7026

Author

Haresh Menghani

FXStreet

Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.

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