NZD/USD extends recovery to the 0.7220 area

Kiwi recovers versus US dollar after Wednesday’s slide.
US dollar down across the board on lower US yields.

Matías Salord FXStreet

The NZD/USD rose to 0.7216, hitting a fresh daily high after the begging of the American session, boosted by a decline of the greenback across the board. The pair is rising after falling on Wednesday to 0.7150, the lowest level in a week.

After the minutes

The minutes from Federal Reserve’s meeting continue to be digested by market participants as “several policymakers” say they agreed to start discussing about tapering. On Thursday, economic data came in mixed. Initial Jobless claims dropped more than expected to 444K, the lowest since March 2020. The Philly Fed index fell more than market consensus to 31.5.

The US dollar weakened modestly after the economic reports as US yields dropped further. The 10-year yield approached 1.70% yesterday, and now it stands at 1.63%. At the same time equity prices in Wall Street are rising, with the Dow Jones up 0.58% and the Nasdaq 1.50%.

The combination of a weaker US dollar and risk appetite is keeping the NZD/USD supported. The pair is attempting to hold above 0.7200. If it manages to consolidate above, the next resistance is seen at 0.7235.

Technical levels

NZD/USD

Overview
Today last price	0.7204
Today Daily Change	0.0034
Today Daily Change %	0.47
Today daily open	0.717

Trends
Daily SMA20	0.7215
Daily SMA50	0.7142
Daily SMA100	0.7174
Daily SMA200	0.698

Levels
Previous Daily High	0.725
Previous Daily Low	0.7151
Previous Weekly High	0.7306
Previous Weekly Low	0.7134
Previous Monthly High	0.7287
Previous Monthly Low	0.6945
Daily Fibonacci 38.2%	0.7189
Daily Fibonacci 61.8%	0.7212
Daily Pivot Point S1	0.713
Daily Pivot Point S2	0.7091
Daily Pivot Point S3	0.7031
Daily Pivot Point R1	0.723
Daily Pivot Point R2	0.729
Daily Pivot Point R3	0.7329

Author

Matías Salord

FXStreet

Matías started in financial markets in 2008, after graduating in Economics. He was trained in chart analysis and then became an educator. He also studied Journalism. He started writing analyses for specialized websites before joining FXStreet.

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