NZD/USD loses bullish momentum before reaching 0.7100, eyes on US data

  • NZD/USD closed the first four days of the week in the positive territory.
  • Trade surplus in New Zealand continued to widen in May.
  • Core PCE inflation in US is expected to rise to 3.4% on a yearly basis.

The NZD/USD pair closed in the positive territory for four straight days and continued to push higher toward 0.7100 on Friday. With investors moving to the sidelines ahead of key data releases from the US, however, the pair lost its momentum and was last seen posting small daily gains at 0.7070.

Earlier in the day, the data from New Zealand revealed that the trade surplus in May widened to NZD469 million from NZD414 million in May. Nevertheless, this reading failed to trigger a noticeable market reaction.

DXY stays below 92.00 on Friday

On the other hand, the US Dollar Index (DXY) continues to fluctuate in a relatively tight range below 92.00, helping NZD/USD cling to this week's recovery gains. Later in the session, the US Bureau of Economic Analysis will release the Personal Consumption Expenditures (PCE) Price Index data for May. Investors expect the Core PCE Price Index to rise to 3.4% on a yearly basis from 3.1% in April. A stronger-than-expected reading could help the USD gather strength ahead of the weekend and limit NZD/USD's upside.

The University of Michigan's Consumer Sentiment Index for June will be featured in the US economic docket as well.

Meanwhile, Wall Street's main indexes remain on track to open modestly higher following Thursday's rally. In case risk flows dominate the financial markets in the second half of the day, the greenback could find it difficult to attract investors.

Technical levels to watch for


Today last price 0.7072
Today Daily Change 0.0011
Today Daily Change % 0.16
Today daily open 0.7061
Daily SMA20 0.7135
Daily SMA50 0.7182
Daily SMA100 0.717
Daily SMA200 0.7046
Previous Daily High 0.7074
Previous Daily Low 0.703
Previous Weekly High 0.7161
Previous Weekly Low 0.6923
Previous Monthly High 0.7317
Previous Monthly Low 0.7115
Daily Fibonacci 38.2% 0.7057
Daily Fibonacci 61.8% 0.7047
Daily Pivot Point S1 0.7036
Daily Pivot Point S2 0.701
Daily Pivot Point S3 0.6991
Daily Pivot Point R1 0.708
Daily Pivot Point R2 0.7099
Daily Pivot Point R3 0.7125



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

Latest Forex News

Latest Forex News

Editors’ Picks

EUR/USD extends gains beyond 1.1820 after mixed US data

EUR/USD has extended its gains above 1.1820 after Durable Goods Orders missed expectations but the CB Consumer Confidence exceeded them. US yields are on the backfoot. Covid and infrastructure headlines are eyed.


GBP/USD soars toward 1.38 on UK covid optimism, dollar weakness

GBP/USD is trading close to 1.39, surging higher. The pound benefits from the drop in British covid cases while the dollar turned down after rising earlier. The US published mixed data.


Gold battles $1,800 as USD lingers near highs

Gold prices loiter near the $1,800 mark for the past five trading sessions. The US dollar remains steady near the four-month high ahead of the Fed’s interest rate decision. The prices moved cautiously despite the general negative sentiments surrounding the greenback.

Gold News

Crypto markets bleed after Amazon denies rumors; uptrend intact

Bitcoin price is experiencing a pullback after rallying 38% to tag $40,000. Ethereum price promptly follows BTC as it eyes a retracement to the $2,018 support level.

Read more

FX: 10 things to watch this week

Taking a look at the economic calendar, it is set to be a busy week for the forex market. There’s a central bank rate decision, GDP, inflation and employment reports scheduled for release. A number of big tech companies have ...

Read more