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

NZD/USD

Overview
Today last price 0.7072
Today Daily Change 0.0011
Today Daily Change % 0.16
Today daily open 0.7061
 
Trends
Daily SMA20 0.7135
Daily SMA50 0.7182
Daily SMA100 0.717
Daily SMA200 0.7046
 
Levels
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

 

 

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