NZD/USD edges higher to near 0.6150 amid improved Kiwi data, subdued US yields

NZD/USD extends gains after softer US employment data released on Thursday.
The Kiwi Building Permit (MoM) improved to 3.7% against the previous decline of 10.6%.
Investors await more US labor data scheduled to be released on Friday, including US Average Hourly Earnings and NFP.

Akhtar Faruqui FXStreet

NZD/USD continues to gain ground for the second trading session on Friday, improving to near 0.6150 during the Asian hours. The depreciation of the US Dollar (USD) could be attributed to the subdued US Treasury yields. US Treasury yields experienced downward pressure amid concerns regarding regional US banks. Additionally, the improved medium-impact data from New Zealand could have provided some support for the New Zealand (NZD) and, consequently, acted as a tailwind for the NZD/USD pair.

The US Dollar Index (DXY), an index to measure the performance of the US Dollar (USD) against a group of six major different currencies, struggles to retrace its recent losses. The DXY hovers around 103.00 with the 2-year and 10-year yields on US Treasury bonds hovering around 4.21% and 3.88%, at the time of writing.

Furthermore, the US Dollar (USD) encountered downward pressure after the release of mixed economic data from the United States (US) on Thursday. Initial Jobless Claims for the week ending on January 26 increased to 224K, exceeding the previous rise of 215K and the expected figure of 212K. However, the ISM Manufacturing PMI showed improvement, climbing to 49.1 from the prior reading of 47.1, surpassing the anticipated figure of 47.0 in January. Additional labor data, including US Average Hourly Earnings and Nonfarm Payrolls (NFP), is scheduled for release on Friday.

On the New Zealand front, the seasonally adjusted Building Permit (MoM) for December exhibited improvement at 3.7%, reversing a previous decline of 10.6% in November. Additionally, ANZ-Roy Morgan Consumer Confidence for December came in at 93.6, compared to the previous reading of 93.1.

The Reserve Bank of New Zealand (RBNZ) emphasizes a target of around the 2% midpoint for future inflation. Investors await New Zealand’s labor market data next week to gain further cues on the country’s economic landscape.

NZD/USD: technical levels to watch

Overview
Today last price	0.6153
Today Daily Change	0.0013
Today Daily Change %	0.21
Today daily open	0.614

Trends
Daily SMA20	0.6155
Daily SMA50	0.619
Daily SMA100	0.606
Daily SMA200	0.6087

Levels
Previous Daily High	0.6143
Previous Daily Low	0.6109
Previous Weekly High	0.615
Previous Weekly Low	0.6061
Previous Monthly High	0.6339
Previous Monthly Low	0.6061
Daily Fibonacci 38.2%	0.613
Daily Fibonacci 61.8%	0.6122
Daily Pivot Point S1	0.6118
Daily Pivot Point S2	0.6096
Daily Pivot Point S3	0.6084
Daily Pivot Point R1	0.6152
Daily Pivot Point R2	0.6164
Daily Pivot Point R3	0.6186

Author

Akhtar Faruqui

FXStreet

Akhtar Faruqui is a Forex Analyst based in New Delhi, India. With a keen eye for market trends and a passion for dissecting complex financial dynamics, he is dedicated to delivering accurate and insightful Forex news and analysis.

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