- NZD/USD touched its highest level since May 2018 at 0.7085.
- US Dollar Index recovers modestly, stays below 91.50.
- Investors await mid-tier macroeconomic data releases from the US.
The NZD/USD pair climbed to its highest level since May 2018 at 0.7085 on Wednesday but seems to have gone into a consolidation phase ahead of mid-tier macroeconomic data releases. As of writing, the pair was virtually unchanged on the day at 0.7063.
DXY finds support before testing 91.00
The broad-based selling pressure surrounding the greenback since the start of the week provided a boost to NZD/USD. The risk-on market environment, as reflected by surging equity indexes in the US, made it difficult for the USD to find demand. The US Dollar Index (DXY) slumped to its lowest level in 30 months at 91.10 on Wednesday and staged a technical rebound. At the moment, the DXY is up 0.05% on the day at 91.36.
Earlier in the day, Reserve Bank of New Zealand (RBNZ) Governor Adrian Orr said that they are focused on being operationally ready to implement negative rates if necessary and kept kiwi's upside limited.
Later in the session, the ADP Employment Change and the ISM-NY Business Conditions Index will be featured in the US economic docket.
Meanwhile, the S&P 500 Futures are down 0.2% on the day, suggesting that the DXY could edge higher in the second half of the day if Wall Street's main indexes push lower.
Technical levels to watch for
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.
Recommended content
Editors’ Picks
EUR/USD holds above 1.0650 after US data
EUR/USD retreats from session highs but manages to hold above 1.0650 in the early American session. Upbeat macroeconomic data releases from the US helps the US Dollar find a foothold and limits the pair's upside.
GBP/USD retreats toward 1.2450 on modest USD rebound
GBP/USD edges lower in the second half of the day and trades at around 1.2450. Better-than-expected Jobless Claims and Philadelphia Fed Manufacturing Index data from the US provides a support to the USD and forces the pair to stay on the back foot.
Gold is closely monitoring geopolitics
Gold trades in positive territory above $2,380 on Thursday. Although the benchmark 10-year US Treasury bond yield holds steady following upbeat US data, XAU/USD continues to stretch higher on growing fears over a deepening conflict in the Middle East.
Ripple faces significant correction as former SEC litigator says lawsuit could make it to Supreme Court
Ripple (XRP) price hovers below the key $0.50 level on Thursday after failing at another attempt to break and close above the resistance for the fourth day in a row.
Have we seen the extent of the Fed rate repricing?
Markets have been mostly consolidating recent moves into Thursday. We’ve seen some profit taking on Dollar longs and renewed demand for US equities into the dip. Whether or not this holds up is a completely different story.