NZD/USD gains ground near 0.5830 after bidding lowest on Thursday

NZD/USD extends gains for the second session due to the correction in the US Dollar.
New Zealand Dollar grapples with pressure as RBNZ is expected to keep interest rates unchanged.
The Greenback faces a challenge on the downbeat US Treasury yields.

Akhtar Faruqui FXStreet

NZD/USD rebounds from the year-to-date low of 0.5772, trading around 0.5830 during the Asian session on Friday. The pair bid the lowest on Thursday since November 2022 as the New Zealand Dollar (NZD) is contending with pressure, with the situation exacerbated by the recent release of headline Consumer Price Index (CPI) data from the nation.

Additionally, the upbeat Kiwi’s ANZ – Roy Morgan Consumer Confidence could provide minor support for the NZD/USD pair. The report showed an improvement in October, reaching 88.1 from 86.4 previously.

Traders in the NZD/USD pair anticipate the Reserve Bank of New Zealand (RBNZ) to adopt a more accommodative stance on interest rate hikes, contributing to the weakening of the Kiwi pair. Moreover, the deteriorating market sentiment, intensified by recent statements from Israel's Prime Minister Benjamin Netanyahu regarding a potential ground assault on Gaza, adds to the downward pressure on the pair.

However, the NZD gains much-needed profits despite the better-than-expected economic data from the United States (US). The preliminary US Gross Domestic Product (GDP) Annualized expanded by 4.9% in the third quarter, a remarkable improvement from the previous reading of a 2.1% expansion, exceeding the 4.2% expectations.

However, the weekly Initial Jobless Claims for the week ending October 21 came in at 210,000, up from 200,000 in the previous reading, and slightly higher than the expectations of 208,000.

The US Dollar Index (DXY) receives downward pressure as the US Federal Reserve (Fed) is expected to keep interest rates unchanged in the upcoming meeting next week, hovering near 106.50 at the time of writing. The US Dollar (USD) is facing challenges in maintaining its recent gains, with the decline in US Treasury yields observed in the previous session exerting pressure on USD bulls.

Investors await the US Core Personal Consumption Expenditures (PCE) data on Friday, seeking further impetus on US economic overview.

NZD/USD: additional important levels

Overview
Today last price	0.583
Today Daily Change	0.0009
Today Daily Change %	0.15
Today daily open	0.5821

Trends
Daily SMA20	0.5914
Daily SMA50	0.5922
Daily SMA100	0.6038
Daily SMA200	0.6138

Levels
Previous Daily High	0.5832
Previous Daily Low	0.5772
Previous Weekly High	0.5931
Previous Weekly Low	0.5815
Previous Monthly High	0.605
Previous Monthly Low	0.5847
Daily Fibonacci 38.2%	0.5809
Daily Fibonacci 61.8%	0.5795
Daily Pivot Point S1	0.5785
Daily Pivot Point S2	0.5748
Daily Pivot Point S3	0.5725
Daily Pivot Point R1	0.5845
Daily Pivot Point R2	0.5868
Daily Pivot Point R3	0.5905

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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