NZD/USD recovers recent losses on improved market sentiment, trades above 0.5850

NZD/USD maintains a position above 0.5850 despite the upbeat US Dollar.
Israel's delay in the ground assault plan in Gaza contributes support to the risk-on sentiment.
China's updates appear to be influencing market sentiment positively.
US Dollar received upward support on stronger PMI figures.

Akhtar Faruqui FXStreet

NZD/USD retraces recent losses, trading at around 0.5860 during the Asian session on Wednesday. The uptick is influenced by improved risk sentiment, with the postponement of Israel's ground assault plan in Gaza contributing support to the pair.

Furthermore, the optimistic outlook is being reinforced by China's intention to issue additional sovereign debt. Additionally, constructive dialogues between the United States and China during their initial economic working group meeting contributed to the positive sentiment.

However, the NZD/USD pair could face challenges as the situation in the Middle East created unease among investors due to the potential for escalation, which could lead to disruptions in the region. Moreover, diplomatic efforts are actively underway to ease tensions in the Israel-Hamas Gaza Strip conflict.

The US Dollar Index (DXY) rebounded from monthly lows, hovering around 106.20 on the back of upbeat preliminary S&P Global PMI figures from the United States released on Tuesday.

However, the downfall in US Treasury yields could provide downward pressure for the US Dollar (USD), with the 10-year yield standing at 4.81%.

US S&P Global Composite PMI exhibited growth in October, rising from 50.2 to 51.0. The Services PMI also saw an increase, reaching 50.9, and the Manufacturing PMI rose to 50.0. This marks the first time in the last six months that manufacturing has sustained a level above the 50-point threshold, signaling a positive shift in that sector.

Investors will likely monitor the US Q3 Gross Domestic Product (GDP) on Thursday. The US Core Personal Consumption Expenditures (PCE) and Kiwi’s ANZ – Roy Morgan Consumer Confidence will be eyed on Friday.

NZD/USD: additional levels to watch

Overview
Today last price	0.5857
Today Daily Change	0.0013
Today Daily Change %	0.22
Today daily open	0.5844

Trends
Daily SMA20	0.5927
Daily SMA50	0.5927
Daily SMA100	0.6044
Daily SMA200	0.6144

Levels
Previous Daily High	0.5874
Previous Daily Low	0.5828
Previous Weekly High	0.5931
Previous Weekly Low	0.5815
Previous Monthly High	0.605
Previous Monthly Low	0.5847
Daily Fibonacci 38.2%	0.5846
Daily Fibonacci 61.8%	0.5856
Daily Pivot Point S1	0.5823
Daily Pivot Point S2	0.5803
Daily Pivot Point S3	0.5777
Daily Pivot Point R1	0.5869
Daily Pivot Point R2	0.5895
Daily Pivot Point R3	0.5915

Author

Akhtar Faruqui

FXStreet

Akhtar Faruqui is a Forex Analyst based in New Delhi, India. With a keen eye for market trends and a passion for dissecting complex financial dynamics, he is dedicated to delivering accurate and insightful Forex news and analysis.

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