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.
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
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.
