NZD/USD flirts with monthly tops, around 0.6980 region

  • NZD/USD gained traction for the second straight day and climbed back closer to monthly tops.
  • The risk-on mood acted as a tailwind for the perceived riskier kiwi amid a subdued USD demand.
  • Hawkish Fed expectations should help limit the USD losses and keep a lid on any further gains.

The NZD/USD pair maintained its bid tone through the Asian session and was last seen hovering near monthly tops, around the 0.6975-80 region.

A combination of supporting factors assisted the NZD/USD pair to build on the previous day's post-US CPI bounce from the 0.6910 support and gain traction for the second consecutive session on Thursday. The prevalent risk-on mood – as depicted by a generally positive tone around the equity markets – benefitted the perceived riskier kiwi amid a subdued US dollar price action.

The greenback witnessed a typical 'buy the rumour, sell the fact' kind of a reaction on Wednesday and reversed its weekly gains to 13-month tops following the release of US consumer inflation figures. The headline US CPI for September rose 0.4%, pushing the yearly rate to 5.4%. The readings were slightly higher than market expectations, though did little to impress the USD bulls.

Investors still seem aligned with the Fed's transitory inflation narrative, which was evident from a further decline in the longer-dated US Treasury bond yields. This, in turn, was seen as another factor that weighed on the buck. That said, expectations for an imminent Fed taper announcement and prospects for an earlier than anticipated interest rate hike helped limit the USD losses.

The minutes of the FOMC monetary policy meeting held in September showed that the Fed remains on track to begin tapering its bond purchases later this year. Moreover, a growing number of policymakers were worried that inflation could persist, forcing investors to bring forward the likely timing of a potential rate hike to September 2022 from December 2022 already priced in.

This makes it prudent to wait for a strong follow-through buying before placing aggressive bullish bets around the NZD/USD pair and confirming a near-term bullish breakout. Market participants now look forward to the US economic docket, featuring the release of Producer Price Index (PPI) and the usual Weekly Initial Jobless Claims data later during the early North American session.

This, along with the US bond yields, will influence the USD price dynamics. Apart from this, traders might further take cues from the broader market risk sentiment for some short-term opportunities around the NZD/USD pair.

Technical levels to watch


Today last price 0.6979
Today Daily Change 0.0016
Today Daily Change % 0.23
Today daily open 0.6963
Daily SMA20 0.6975
Daily SMA50 0.7004
Daily SMA100 0.7029
Daily SMA200 0.7104
Previous Daily High 0.697
Previous Daily Low 0.6912
Previous Weekly High 0.6984
Previous Weekly Low 0.6876
Previous Monthly High 0.7171
Previous Monthly Low 0.6859
Daily Fibonacci 38.2% 0.6948
Daily Fibonacci 61.8% 0.6934
Daily Pivot Point S1 0.6926
Daily Pivot Point S2 0.689
Daily Pivot Point S3 0.6868
Daily Pivot Point R1 0.6985
Daily Pivot Point R2 0.7006
Daily Pivot Point R3 0.7043



Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Feed news

How do emotions affect trade?
Follow up our daily analysts guidance

Subscribe Today!    

Latest Forex News

Latest Forex News

Editors’ Picks

EUR/USD slides under 1.16 as US Retail Sales smash estimates

EUR/USD is trading under 1.16 after US Retail Sales smashed estimates with 0.7% in September. Treasury yields are rising. The risk-on mood continues to underpin the pair, as the ECB policymaker Wunsch dismisses inflation concerns. 


GBP/USD retreats below 1.3750 after US data

GBP/USD has pared some of its gains after US Retail Sales beat estimates, with the core group hitting 0.8% last month. Earlier, investors shrugged off dovish comments from two BOE members. 


XAU/USD slumps to $1,770 area on upbeat US data, surging US bond yields

Gold started the last day of the week on the back foot and extended its slide to a fresh daily low of $1,770 in the early trading hours of the American session pressured by the dollar's resilience and surging US Treasury bond yields.

Gold News

Crypto bulls on winning streak pushing for more

Bitcoin price favors bulls reaching $60,000 by the end of this week and onwards to new all-time highs by the end of next week. Ethereum price broke a bearish top line and could hit new all-time highs by next week in tandem with Bitcoin. 

Read more

Why is Tesla going up?

Tesla's (TSLA) stock price has finally pushed higher in a series of steady and sure moves. We had nearly given up on our bullish call with Tesla stock as it kept struggling around the $800 level.

Read more