- NZD/USD is expected to continue its upside momentum amid a cheerful market mood.
- The hawkish commentary from Fed Barkin failed to provide support to the USD Index.
- NZD/USD is at a make or a break near the edge of the Symmetrical Triangle pattern.
The NZD/USD pair is making efforts in keeping its auction above 0.6260 in the early Tokyo session. The Kiwi asset is expected to multiply its upside momentum as the US Dollar Index (DXY) seems vulnerable above 102.00 amid positive market sentiment. The hawkish commentary from Richmond Federal Reserve (Fed) President Thomas Barkin failed to provide support to the USD Index. According to Fed Barkin, there is a lot of money available for spending among households.
S&P500 continued to remain in a positive trajectory as United States authorities have infused confidence among the market participants that the US banking system is ‘sound and resilient’ and a collapse of three mid-size banks cannot shake the overall banking system.
The New Zealand Dollar will remain in action ahead of China’s Caixin Manufacturing PMI data, which will release on Monday. But before that, official PMI data by the National Bureau of Statistics (NBS) will be keenly watched.
It is worth noting that New Zealand is one of the leading trading partners of China and higher PMI figures would also strengthen the New Zealand Dollar.
On a two-hour scale, NZD/USD is at a make or a break near the downward-sloping trendline of the Symmetrical Triangle chart pattern. The downward-sloping trendline of the aforementioned pattern is plotted from March 23 high at 0.6295 while the upward-sloping trendline is placed from Marc 16 low at 0.6161.
The Kiwi asset is auctioning above the 50-period Exponential Moving Average (EMA), which indicates the short-term trend is bullish.
Meanwhile, the Relative Strength Index (RSI) (14) is looking to climb above 60.00, which will result in the activation of bullish momentum.
A decisive break above March 29 high at 0.6272 will drive the asset towards March 23 high at 0.6295 followed by February 07 high at 0.6363.
On the flip side, a breakdown of March 21 low at 0.6167 will drag the asset toward March 15 low at 0.6139. A slippage below the latter will expose the asset for more downside toward the round-level support at 0.6100.
NZD/USD two-hour chart
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
AUD/USD hovers around 0.6500 amid light trading, ahead of US GDP
AUD/USD is trading close to 0.6500 in Asian trading on Thursday, lacking a clear directional impetus amid an Anzac Day holiday in Australia. Meanwhile, traders stay cautious due ti risk-aversion and ahead of the key US Q1 GDP release.
USD/JPY finds its highest bids since 1990, near 155.50
USD/JPY keeps breaking into its highest chart territory since June of 1990 early Thursday, testing 155.50 for the first time in 34 years as the Japanese Yen remains vulnerable, despite looming Japanese intervention risks. Focus shifts to Thursday's US GDP report and the BoJ decision on Friday.
Gold price lacks firm intraday direction, holds steady above $2,300 ahead of US data
Gold price remains confined in a narrow band for the second straight day on Thursday. Reduced Fed rate cut bets and a positive risk tone cap the upside for the commodity. Traders now await key US macro data before positioning for the near-term trajectory.
Injective price weakness persists despite over 5.9 million INJ tokens burned
Injective price is trading with a bearish bias, stuck in the lower section of the market range. The bearish outlook abounds despite the network's deflationary efforts to pump the price. Coupled with broader market gloom, INJ token’s doomed days may not be over yet.
Meta Platforms Earnings: META sinks 10% on lower Q2 revenue guidance Premium
This must be "opposites" week. While Doppelganger Tesla rode horrible misses on Tuesday to a double-digit rally, Meta Platforms produced impressive beats above Wall Street consensus after the close on Wednesday, only to watch the share price collapse by nearly 10%.