- NZD/USD lost its traction after climbing to fresh multi-year highs.
- US Dollar Index recovers toward 90.00 after latest data.
- US economy expanded by 4.1% in Q4 as expected.
The NZD/USD pair advanced to its highest level since August 2017 at 0.7465 on Thursday but reversed its direction in the early American session. As of writing, the pair was posting small daily losses at 0.7430.
USD recovers on the back of rising T-bond yields
The broad-based USD weakness allowed NZD/USD to build on its weekly gains during the first half of the day. The US Dollar Index (DXY) slumped to its lowest level since early January at 89.69 during the European session as the greenback struggled to find demand as a safe-haven.
However, the sharp upsurge witnessed in the US Treasury bond yield following the latest batch of US data helped the DXY stage a rebound.
In its second estimate, the US Bureau of Economic Analysis reported that the Real Gross Domestic Product (GDP) expanded at an annual rate of 4.1% in the fourth quarter. Additionally, the weekly Initial Jobless Claims fell to 730K and came in much better than the market expectation of 838K. Finally, Durable Doods Orders in January rose by 3.4% and beat analysts' estimate for an increase of 1.1% by a wide margin.
At the moment, the 10-year US Treasury bond yield is up 5.7% on the day at 1.463 and the DXY is losing 0.35% at 89.85.
In the early trading hours of the Asian session, Roy Morgan Consumer Confidence Index and Trade Balance data will be released from New Zealand.
Technical levels to watch for
|Today last price||0.743|
|Today Daily Change||-0.0020|
|Today Daily Change %||-0.27|
|Today daily open||0.745|
|Previous Daily High||0.7455|
|Previous Daily Low||0.7315|
|Previous Weekly High||0.7316|
|Previous Weekly Low||0.7158|
|Previous Monthly High||0.7316|
|Previous Monthly Low||0.7096|
|Daily Fibonacci 38.2%||0.7401|
|Daily Fibonacci 61.8%||0.7368|
|Daily Pivot Point S1||0.7358|
|Daily Pivot Point S2||0.7266|
|Daily Pivot Point S3||0.7218|
|Daily Pivot Point R1||0.7499|
|Daily Pivot Point R2||0.7547|
|Daily Pivot Point R3||0.7639|
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.