- NZD/USD remains sidelined after refreshing weekly top on crossing the key hurdles, now support.
- Convergence of 100-HMA, one-week-old descending trend line restricts immediate downside.
- NZ Q1 Terms of Trade Index drops, US NFP awaited amid softer US Dollar, easing Fed bets.
NZD/USD buyers take a breather at the weekly top surrounding 0.6070 as downbeat New Zealand (NZ) data prods upside momentum during early Friday in Asia. Also challenging the Kiwi pair buyers is the cautious mood ahead of the key US employment releases.
That said, the NZ Terms of Trade Index for the first quarter (Q1) of 2023 marches -1.5% market expectations versus 1.8% previous readings. Additionally, forecasts surrounding the US Nonfarm Payrolls (NFP) to ease to 190K from 253K prior while the Unemployment Rate is also expected to increase to 3.5% from 3.4%.
Also read: NZD/USD surges above 0.6050 amid US Dollar weakness
Technically, NZD/USD remains firmer after crossing a convergence of the 100-Hour Moving Average (HMA) and the one-week-old previous resistance line, around 0.6535-30 by the press time.
The upside momentum gains support from the bullish MACD signals but the RSI (14) line appears overbought and hence the Kiwi pair buyers may witness challenges in keeping the reins.
With this, the 200-HMA hurdle of around 0.6095, quickly followed by the 0.6100 round figure, can restrict the immediate upside of the NZD/USD pair.
Following that, 50% and 61.8% Fibonacci retracement levels of the pair’s May 19-31 downturn, respectively near 0.6145 and 0.6185, as well as the 0.6200 threshold, could probe the NZD/USD bulls before giving them control.
On the flip side, a clear break of the 0.6035-30 support confluence becomes necessary for the NZD/USD bear’s return. Even so, the 0.6000 psychological magnet and the previous monthly low of around 0.5985 can check the pair sellers.
NZD/USD: Hourly chart
Trend: Limited upside expected
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 holds above 0.6500 in thin trading
The Australian Dollar managed to recover ground against its American rival after AUD/USD fell to 0.6484. The upbeat tone of Wall Street underpinned the Aussie despite broad US Dollar strength and tepid Australian data.
EUR/USD comfortable below 1.0800 lower lows at sight
The EUR/USD pair lost ground on Thursday and settled near a fresh March low of 1.0774. Strong US data and hawkish Fed speakers comments lead the way ahead of the release of the US PCE Price Index on Friday.
Gold price finishes Thursday’s session set to reach new all-time highs
Gold price rallied during the North American session on Thursday and hit a new all-time high of $2,225 in the mid-North American session. Precious metal prices are trending higher even though US Treasury yields are advancing, underpinning the Greenback.
Bitcoin price extends retreat from $69K as old whales shift their holdings to new whales
Bitcoin price continues to move further away from the $69,000 threshold, gaining ground as BTC bulls hope for a retest of the $73,777 peak. This is because of the general assumption that clearing this blockade would set the tone for a reach higher, marking a new all-time high.
Bears have been standing before a steamroller so far this year
Despite a pushback on rate cuts from Christopher Waller, and what was supposed to be cautious trading sentiment ahead of critical US inflation data released later on Friday, the S&P 500 rose on Thursday, marking its best first-quarter performance in five years.