NZD/USD remains steady around 0.7000 as USD weakness limits downside

NZD/USD is moving sideways around 0.7000 on Friday.
US Dollar Index pushes lower toward 92.80 ahead of American session.
UoM Consumer Sentiment Index data from US will be looked upon for fresh impetus.

Eren Sengezer FXStreet

After losing more than 40 pips on Thursday, the NZD/USD pair seems to have gone into a consolidation phase on Friday and was last seen rising 0.12% on the day at 0.7007.

Falling US T-bond yields weigh on DXY

The renewed USD weakness ahead of the American session seems to be helping NZD/USD stay in the positive territory. Pressured by a more-than-1% decline witnessed in the benchmark 10-year US Treasury bond yield, the US Dollar ındex is losing 0.18% on a daily basis at 92.82.

Earlier in the day, the data from New Zealand showed that the Business NZ PMI improved to 62.6 in July from 60.7 in June. This reading came in better than the market expectation of 56.6 but failed to trigger a noticeable market reaction.

The University of Michigan's preliminary Consumer Sentiment Index data for August will be the last data of the week featured in the US economic docket. Investors expect the index to stay unchanged at 81.2 following July's modest decline. Although an upbeat reading could help the USD gather strength ahead of the weekend, NZD/USD is unlikely to make a sharp move in either direction amid thin trading conditions.

US Michigan Consumer Sentiment August Preview: Payrolls, inflation and the pandemic.

Technical levels to watch for

NZD/USD

Overview
Today last price	0.7008
Today Daily Change	0.0007
Today Daily Change %	0.10
Today daily open	0.7001

Trends
Daily SMA20	0.699
Daily SMA50	0.7027
Daily SMA100	0.7096
Daily SMA200	0.7109

Levels
Previous Daily High	0.7049
Previous Daily Low	0.6995
Previous Weekly High	0.7089
Previous Weekly Low	0.6952
Previous Monthly High	0.7106
Previous Monthly Low	0.6881
Daily Fibonacci 38.2%	0.7016
Daily Fibonacci 61.8%	0.7028
Daily Pivot Point S1	0.6981
Daily Pivot Point S2	0.6961
Daily Pivot Point S3	0.6927
Daily Pivot Point R1	0.7035
Daily Pivot Point R2	0.7069
Daily Pivot Point R3	0.7089

Author

Eren Sengezer

FXStreet

As an economist at heart, Eren Sengezer specializes in the assessment of the short-term and long-term impacts of macroeconomic data, central bank policies and political developments on financial assets.

EUR/USD flirts with daily highs, retargets 1.1900

EUR/USD regains upside traction, returning to the 1.1880 zone and refocusing its attention to the key 1.1900 barrier. The pair’s slight gains comes against the backdrop of a humble decline in the US Dollar as investors continue to assess the latest US CPI readings and the potential Fed’s rate path.

GBP/USD remains well bid around 1.3650

GBP/USD maintains its upside momentum in place, hovering around daily highs near 1.3650 and setting aside part of the recent three-day drop. Cable’s improved sentiment comes on the back of the Greenback’s irresolute price action, while recent hawkish comments from the BoE’s Pill also collaborate with the uptick.

Gold clings to gains just above $5,000/oz

Gold is reclaiming part of the ground lost on Wednesday’s marked decline, as bargain-hunters keep piling up and lifting prices past the key $5,000 per troy ounce. The precious metal’s move higher is also underpinned by the slight pullback in the US Dollar and declining US Treasury yields across the curve.

Crypto Today: Bitcoin, Ethereum, XRP in choppy price action, weighed down by falling institutional interest

Bitcoin's upside remains largely constrained amid weak technicals and declining institutional interest. Ethereum trades sideways above $1,900 support with the upside capped below $2,000 amid ETF outflows.

Week ahead – Data blitz, Fed Minutes and RBNZ decision in the spotlight

US GDP and PCE inflation are main highlights, plus the Fed minutes. UK and Japan have busy calendars too with focus on CPI. Flash PMIs for February will also be doing the rounds. RBNZ meets, is unlikely to follow RBA’s hawkish path.

Ripple Price Forecast: XRP potential bottom could be in sight

Ripple edges up above the intraday low of $1.35 at the time of writing on Friday amid mixed price actions across the crypto market. The remittance token failed to hold support at $1.40 the previous day, reflecting risk-off sentiment amid a decline in retail and institutional sentiment.