- NZD/USD witnessed some short-covering move on Thursday amid persistent USD selling.
- The ongoing slump in the US bond yields to all-time lows continued weighing on the USD.
- Technical buying above 0.6300 mark accelerates the move during the European session.
The NZD/USD pair rallied over 20 pips and refreshed session tops, around the 0.6325 region in the last hour, recovering the previous day's negative move to over four-month lows.
The pair showed some resilience below the 0.6300 round-figure mark, rather attracted some dip-buying on Thursday and for now, seems to have stalled its recent bearish trajectory witnessed since the beginning of this year.
The upside is likely to remain capped
Persistent selling surrounding the US dollar – amid the ongoing fall in the US Treasury bond yields to fresh all-time lows – was seen as one of the key factors that extended some support to the major and prompted a short-covering move.
The momentum took along some intraday trading stops near the 0.6300 round-figure mark, which seemed to be a key trigger behind the latest leg of a sudden spike over the past hour or so, albeit the risk-off mood might cap further gains.
Growing concerns over the global outbreak of the deadly coronavirus and its impact on the world economy continued weighing on investors' sentiment, which should keep a lid on any rally for the perceived riskier currency – kiwi.
Moving ahead, Thursday's US economic docket, highlighting the release of revised Q4 GDP print and Durable Goods Orders, might influence the USD price dynamics and will be looked upon for some short-term trading opportunities.
Technical levels to watch
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD edges lower toward 1.0700 post-US PCE
EUR/USD stays under modest bearish pressure but manages to hold above 1.0700 in the American session on Friday. The US Dollar (USD) gathers strength against its rivals after the stronger-than-forecast PCE inflation data, not allowing the pair to gain traction.
GBP/USD retreats to 1.2500 on renewed USD strength
GBP/USD lost its traction and turned negative on the day near 1.2500. Following the stronger-than-expected PCE inflation readings from the US, the USD stays resilient and makes it difficult for the pair to gather recovery momentum.
Gold struggles to hold above $2,350 following US inflation
Gold turned south and declined toward $2,340, erasing a large portion of its daily gains, as the USD benefited from PCE inflation data. The benchmark 10-year US yield, however, stays in negative territory and helps XAU/USD limit its losses.
Bitcoin Weekly Forecast: BTC’s next breakout could propel it to $80,000 Premium
Bitcoin’s recent price consolidation could be nearing its end as technical indicators and on-chain metrics suggest a potential upward breakout. However, this move would not be straightforward and could punish impatient investors.
Week ahead – Hawkish risk as Fed and NFP on tap, Eurozone data eyed too
Fed meets on Wednesday as US inflation stays elevated. Will Friday’s jobs report bring relief or more angst for the markets? Eurozone flash GDP and CPI numbers in focus for the Euro.