NZD/USD remains depressed near 0.7220 area, downside seems limited ahead of NFP

NZD/USD witnessed some selling on Friday and snapped two consecutive days of the winning streak.
The pullback lacked any catalyst and could be solely attributed to some repositioning ahead of NFP.
The prevalent USD selling bias, upbeat market mood should help limit the downside for the major.

Haresh Menghani FXStreet

The NZD/USD pair remained on the defensive through the first half of the European session and was last seen trading around the 0.7220-15 region, just a few pips above daily lows.

The pair struggled to capitalize on this week's goodish rebound from the 0.7115 region, or the lowest level since April 14 and witnessed some selling on the last day of the week. This marked the first day of a negative move in the previous three sessions, though a combination of factors helped limit any deeper losses.

Firming expectations that the Fed will keep interest rates low for a longer period dragged the US dollar to one-week lows on Friday. Apart from this, the underlying bullish tone in the equity markets further undermined the safe-haven greenback. This, in turn, extended some support to the perceived riskier kiwi.

Moreover, investors also seemed reluctant to place any aggressive bets, rather preferred to wait on the sideline ahead of the closely-watched US monthly jobs report. The headline NFP is anticipated to show another month of blockbuster growth in the US labour market and show that the economy added nearly one million jobs in April.

The unemployment rate is also expected to edge lower to 5.8% from 6.0% in March. The upbeat readings, however, might not be enough to shift the Fed rate expectations or act as a source of any meaningful USD strength. This, in turn, supports prospects for the emergence of some dip-buying around the NZD/USD pair.

Technical levels to watch

NZD/USD

Overview
Today last price	0.7219
Today Daily Change	-0.0014
Today Daily Change %	-0.19
Today daily open	0.7233

Trends
Daily SMA20	0.7171
Daily SMA50	0.7139
Daily SMA100	0.7164
Daily SMA200	0.6953

Levels
Previous Daily High	0.724
Previous Daily Low	0.7184
Previous Weekly High	0.7287
Previous Weekly Low	0.715
Previous Monthly High	0.7287
Previous Monthly Low	0.6945
Daily Fibonacci 38.2%	0.7219
Daily Fibonacci 61.8%	0.7205
Daily Pivot Point S1	0.7198
Daily Pivot Point S2	0.7163
Daily Pivot Point S3	0.7142
Daily Pivot Point R1	0.7254
Daily Pivot Point R2	0.7275
Daily Pivot Point R3	0.731

Author

Haresh Menghani

FXStreet

Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.

GBP/USD surges to multi-day peaks past 1.3250

GBP/USD leaves behind Friday’s small pullback and advances past 1.3250 level, or five-day highs, on Monday. Cable’s upside follows extra losses in the Greenback, while traders continue to assess the geopolitical front and upcoming key events.

EUR/USD pops to daily highs near 1.1430

EUR/USD starts the week on a positive note, climbing to as high as the 1.1430 zone, or daily tops, on Monday. The pair’s recovery comes in response to the broad-based US Dollar weakness, while investors continue to monitor developments from the Middle East ahead of the beginning of the ECB's annual forum.

Gold remains supported by $4,000

Gold remains under marked selling pressure, holding on just above the key $4,000 mark per troy ounce at the beginning of the week. The precious metal reverses two daily advances in a row as renewed effervescence in the Middle East revive inflation concerns and bolster Fed rate hike expectations.

Bitcoin four-year cycle: BTC risks 75% drawdown with four months of bear market still ahead

Bitcoin price continues to trend downward below the $60,000 support zone after losing over 50% of its value since the $126,199 high in October. Bitcoin’s four-year cycle, measured from cycle tops to bottoms, suggests that four months of a bear market are still ahead.

Just like Fed, is BoJ’s independence under threat?

When talking about central bank independence, most of the focus has been on Donald Trump’s pressure on the Federal Reserve. But a similar story, a quieter one for now, seems to be happening on the other side of the Pacific: Japan’s government may be testing the Bank of Japan’s independence.

Kevin Warsh isn't expected to say much in Sintra: That's exactly why markets will listen

Financial markets could find an important catalyst in the enchanting, fairytale-like landscape of Sintra this week. The ECB Forum will, as it does every year, gather the crème de la crème of central banks. The new boss at the Fed, who has clearly said that the Fed should stop explaining everything, will need to talk – and traders should listen.