NZD/USD extends gains, targets 0.67 ahead of US inflation data

Greenback struggles to find demand after FOMC Chairman Powell's remarks.
US Dollar Index slumps below 97 handle on Thursday.
Coming up: Inflation data from the US, Business NZ PMI from New Zealand.

Eren Sengezer FXStreet

After adding more than 40 pips on Wednesday, the NZD/USD pair extended its rebound from the multi-week lows that it set at 0.6568 yesterday and reached a weekly high of 0.6678. As of writing, the pair was up 0.42% on the day at 0.6674.

FOMC Chairman Powell's cautious remarks yesterday revived hopes of the Fed making a sharp U-turn in its policy outlook and weighed on the greenback. The US Dollar Index, which rose to its highest level in three weeks at 97.60 earlier this week, broke below the 97 mark.

Ahead of the Consumer Price Index (CPI) data from the U.S., which is expected to edge down to 1.6% on a yearly basis in June from 1.8% in May, the DXY is down 0.2% on the day at 96.88. Later in the day, Chairman Powell will speak again in the second day of his semi-annual testimony before the Congress.

In the early trading hours of the Asian session, Business NZ PMI data from New Zealand and Chinese trade balance data will be looked upon for fresh impetus.

Key technical levels to watch for

NZD/USD

Overview
Today last price	0.6675
Today Daily Change	0.0028
Today Daily Change %	0.42
Today daily open	0.6647

Trends
Daily SMA20	0.6619
Daily SMA50	0.659
Daily SMA100	0.6685
Daily SMA200	0.6713

Levels
Previous Daily High	0.6657
Previous Daily Low	0.6567
Previous Weekly High	0.6728
Previous Weekly Low	0.6602
Previous Monthly High	0.6722
Previous Monthly Low	0.6487
Daily Fibonacci 38.2%	0.6623
Daily Fibonacci 61.8%	0.6601
Daily Pivot Point S1	0.659
Daily Pivot Point S2	0.6533
Daily Pivot Point S3	0.65
Daily Pivot Point R1	0.6681
Daily Pivot Point R2	0.6714
Daily Pivot Point R3	0.6771

Author

Eren Sengezer

FXStreet

As an economist at heart, Eren Sengezer specializes in the assessment of the short-term and long-term impacts of macroeconomic data, central bank policies and political developments on financial assets.

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