NZD/USD rises above 0.5900, bears still in command

NZD/USD rose back above 0.5900, displaying nearly 0.20% gains.
The USD DXY and US yields are retreating after sharply rising on Friday following Powell’s speech.
Eyes on labour market and economic activity figures from the US.

Patricio Martín FXStreet

On Monday, the NZD/USD gained traction and rose above 0.5900. No relevant data was released for the US and New Zealand and the upward momentum can be explained by the USD slightly retreating against its rivals, consolidating Thursday and Friday’s gains.

Markets are still assessing Jerome Powell’s words on Friday. He didn’t commit to another hike and addressed that the monetary policy is still data-dependant and the data justifies another hike. In addition, he stated that the economy hasn’t cooled down as expected and that they will retain rates at restrictive levels until inflation shows signs of deceleration.

All eyes are now on the US economic calendar releases this week, which include mid and high-tier labour market figures, including JOLTs Job Openings figures from July and ADP Employment Change and Nonfarm Payrolls from August. In addition, Gross Domestic Product (GDP), ISM PMI and Core Personal Consumption Expenditures (PCE) will also be closely watched for investors to model their expectations for the next Fed meetings.

In the meantime, according to the CME FedWatch tool, the odds of a hike in September are still low, but the probabilities increased nearly 50% for the November meeting.

NZD/USD Levels to watch

Based on the daily chart, it is evident that NZD/USD leans toward a bearish outlook in the short term. The Relative Strength Index (RSI) remains below its midline, deep in negative territory, showcasing a neutral slope near the oversold threshold. Similarly, the Moving Average Convergence Divergence (MACD) exhibits red bars, emphasizing the strengthening bearish momentum for NZD/USD. Also, the pair is below the 20,100 and 200-day Simple Moving Averages (SMAs), indicating a challenging position for the buyers in the bigger picture as the bears remain in command.

Support levels: 0.5900, 0.5870, 0.5850.

Resistance levels: 0.5940, 0.5950, 0.5980.

NZD/USD Daily Chart

NZD/USD

Overview
Today last price	0.5909
Today Daily Change	0.0006
Today Daily Change %	0.10
Today daily open	0.5903

Trends
Daily SMA20	0.6011
Daily SMA50	0.6125
Daily SMA100	0.6152
Daily SMA200	0.6227

Levels
Previous Daily High	0.5943
Previous Daily Low	0.5885
Previous Weekly High	0.5987
Previous Weekly Low	0.5885
Previous Monthly High	0.6413
Previous Monthly Low	0.612
Daily Fibonacci 38.2%	0.5907
Daily Fibonacci 61.8%	0.5921
Daily Pivot Point S1	0.5878
Daily Pivot Point S2	0.5852
Daily Pivot Point S3	0.582
Daily Pivot Point R1	0.5936
Daily Pivot Point R2	0.5968
Daily Pivot Point R3	0.5994

Author

Patricio Martín

FXStreet

Patricio is an economist from Argentina passionate about global finance and understanding the daily movements of the markets.

EUR/USD stays defensive below 1.1900 as USD recovers

EUR/USD trades in negative territory for the third consecutive day, below 1.1900 in the European session on Thursday. A modest rebound in the US Dollar is weighing on the pair, despite an upbeat market mood. Traders keep an eye on the US weekly Initial Jobless Claims data for further trading impetus.

GBP/USD holds above 1.3600 after UK data dump

\GBP/USD moves little while holding above 1.3600 in the European session on Thursday, following the release of the UK Q4 preliminary GDP, which showed a 0.1% growth against a 0.2% increase expected. The UK industrial sector activity deteriorated in Decembert, keeping the downward pressure intact on the Pound Sterling.

Gold sticks to modest intraday losses as reduced March Fed rate cut bets underpin USD

Gold languishes near the lower end of its daily range heading into the European session on Thursday. The precious metal, however, lacks follow-through selling amid mixed cues and currently trades above the $5,050 level, well within striking distance of a nearly two-week low touched the previous day.

Cardano eyes short-term rebound as derivatives sentiment improves

Cardano (ADA) is trading at $0.257 at the time of writing on Thursday, after slipping more than 4% so far this week. Derivatives sentiment improves as ADA’s funding rates turn positive alongside rising long bets among traders.

A tale of two labour markets: Headline strength masks underlying weakness

Undoubtedly, yesterday’s delayed US January jobs report delivered a strong headline – one that surpassed most estimates. However, optimism quickly faded amid sobering benchmark revisions.

Sonic Labs’ vertical integration fuels recovery in S token

Sonic, previously Fantom (FTM), is extending its recovery trade at $0.048 at the time of writing, after rebounding by over 12% the previous day. The recovery thesis’ strengths lie in the optimism surrounding Sonic Labs’ Wednesday announcement to shift to a vertically integrated model, aimed at boosting S token utility.