- NZD/USD turned north after dropping to 0.6620 area on Thursday.
- US economic activity contracted at a record pace in second quarter.
- US Dollar Index closes in on 93.00 in American session.
The NZD/USD pair dropped to 0.6620 during the European trading hours as the USD capitalized on risk-off flows and gathered strength against its rivals. However, with the greenback facing heavy bearish pressure in the second half of the day, the pair erased the majority of its daily losses and was last seen trading at 0.6664, where it was down only 0.04% on the day.
USD fails to preserve its strength
Earlier in the day, the sharp fall witnessed in major European equity indexes helped the greenback find demand as a safe-haven. The US Dollar Index (DXY), which extended its slide after the FOMC's policy announcements on Wednesday, staged a convincing rebound and rose to 93.68 ahead of the American session.
However, with the US Treasury bond yields turning south following the growth data from the US, the DXY lost its traction and slumped to its lowest level in more than two years at 93.06.
In its flash estimate, the US Bureau of Economic Analysis announced that the real Gross Domestic Product (GDP) in the US contracted at a record pace of 32.9% on a yearly basis in the second quarter. Although this reading came in slightly better than the market expectation of -34.1%, it forced investors to seek refuge and ramped up the demand for safe-haven T-bonds.
At the moment, the 10-year US T-bond yield is down 5.55% on the day and the DXY is losing 0.17% at 93.10.
In the early Asian session on Friday, the ANZ's Roy Mordan Consumer Confidence Index data from New Zealand will be looked upon for fresh impetus.
Technical levels to watch for
|Today last price||0.6663|
|Today Daily Change||-0.0007|
|Today Daily Change %||-0.10|
|Today daily open||0.667|
|Previous Daily High||0.668|
|Previous Daily Low||0.664|
|Previous Weekly High||0.6691|
|Previous Weekly Low||0.6538|
|Previous Monthly High||0.6585|
|Previous Monthly Low||0.6186|
|Daily Fibonacci 38.2%||0.6665|
|Daily Fibonacci 61.8%||0.6655|
|Daily Pivot Point S1||0.6647|
|Daily Pivot Point S2||0.6623|
|Daily Pivot Point S3||0.6606|
|Daily Pivot Point R1||0.6687|
|Daily Pivot Point R2||0.6704|
|Daily Pivot Point R3||0.6728|
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.