NZD/USD Review: Flirts with weekly lows, just above mid-0.6700s ahead of US GDP

Haresh Menghani FXStreet

• Extends overnight sharp retracement from over 2-week tops.
• A modest USD buying keeps exerting some downward pressure.
• All eyes remain glued to today’s advance US Q2 GDP growth numbers.

The NZD/USD pair extended overnight retracement slide from over two-week tops and dropped to fresh weekly low on Friday.

Despite Thursday's disappointing US macro data, the USD staged a solid rebound on the back of a goodish pickup in the US Treasury bond yields and prompted some aggressive selling around the major.

The pair kept losing ground for the second consecutive session on Friday and was being weighed down by a follow-through US Dollar buying interest, despite subdued action in the money markets.

Meanwhile, a negative tone around commodity space further dented sentiment surrounding commodity-linked currencies - like the Kiwi and exerted some additional downward pressure through the mid-European session.

Moving ahead, today's key focus would be on the advance US GDP report, which is anticipated to show a strong economic growth during the second quarter of 2018. Strong growth figures would further cement Fed rate hike prospects and increases prospects for further near-term up-move for the buck.

Technical Analysis

Today's downfall looks driven by technical selling, especially after yesterday's sharp slide back below 20-day SMA support. The pair now seems to have formed a bearish double-top pattern on the short-term chart, albeit the set-up will be complete only once the pair breaks below an ascending trend-line support near the 0.6730-25 region.

Below the mentioned support, the pair is likely to aim back towards retesting monthly/YTD lows, around the 0.6690 region, touched on July 2, before starting a fresh leg of near-term downward trajectory.

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 appears well offered near 1.3160

GBP/USD builds on Tuesday’s losses, although it now manages to pick up some pace and bounce off earlier multi-month troughs near 1.3140. The Greenback’s solid performance and continued political turmoil in the UK are keeping Cable under persistent pressure, with little sign of a meaningful recovery.

EUR/USD softens to near 1.1350 as Fed hike bets rise ahead of PCE inflation data

The EUR/USD pair declines to around 1.1355 during the early Asian trading hours on Thursday. The Euro weakens to its lowest level since June 2025 against the US Dollar as traders increase their bets on US interest rate hikes later this year. The US May Personal Consumption Expenditures inflation data will be the highlight on Thursday.

Gold struggles near YTD lows on hawkish Fed bets, bullish USD ahead of US PCE

Gold is seen consolidating around $4,000 during the Asian session on Thursday as bears pause following the overnight slump to the lowest level since November 2025. Despite easing inflationary concerns amid falling oil prices, elevated Fed rate-hike bets help the US Dollar preserve its recent strong gains to the highest level since May 2025. This might continue to undermine the non-yielding bullion as the focus shifts to the release of the US PCE Price Index.

Strategy MSTR shares drop to two-year low as Bitcoin dip below $60K

The common shares of Strategy fell below $100 on Wednesday for the first time since March 2024, extending losses as Bitcoin's prolonged decline continues to weigh on investor perceptions of the company's leveraged crypto strategy. The company's MSTR stock closed trading at $94, reflecting a 9.3% decline.

US-Iran talks: The next 60 days will decide where Oil prices go next

Oil markets received some encouraging news after weeks of rising tensions in the Middle East. But let’s not get ahead of ourselves: we’re far from victory, and markets just seem to have priced out the worst-case scenario. The US and Iran have reportedly made "substantive progress" in talks in Switzerland and agreed on a framework for working toward a broader deal within 60 days.

Regime change: Inside Kevin Warsh's first move to make the Fed unreadable on purpose

The rate did not move. That was the least interesting thing about Kevin Warsh's first meeting in charge of the Fed. The FOMC held its benchmark at 3.50%-3.75% for the fourth straight meeting, exactly as priced, and then the new chair used his first press conference to dismantle the machinery the market has leaned on for a decade.