NZD/USD spikes to session tops, further beyond 0.6300 handle


  • A subdued USD demand helped the pair to gain some traction.
  • Positive trade-related comments provided an additional boost.

 
The NZD/USD pair jumped around 30 pips and surged past the 0.6300 handle to refresh session tops in the last hour.
 
Following a brief consolidation during the Asian session, the pair managed to regain some positive traction and was now seen trying to build on the overnight late rebound from two-week lows.

Subdued USD demand supportive

A subdued US Dollar demand, led by weaker sentiment around the US Treasury bond yields amid Fed rate cut expectations, turned out to be one of the key factors extending some support.
 
The latest disappointment from the US retail sales figures reinforced market expectations that the Fed will again cut interest rates at its upcoming monetary policy meeting on October 29-30.
 
Data released on Wednesday showed that the US retail sales fell for the first time in seven months in September and fueled fears that manufacturing-led weakness was spreading to the broader economy.
 
Apart from a modest USD weakness, the pair was further supported by positive trade-related comments from China's Commerce Ministry, saying that we are discussing "Phase 2" of a deal with the US.
 
It will now be interesting to see if the pair is able to capitalize on the positive momentum or meets with some fresh supply at higher levels as traders look forward to second-tier US economic data for a fresh impetus.
 
Thursday's US economic docket features the release of Philly Fed Manufacturing Index and housing market data, which might produce some short-term trading opportunities later during the early North-American session.

Technical levels to watch

NZD/USD

Overview
Today last price 0.6306
Today Daily Change 0.0015
Today Daily Change % 0.24
Today daily open 0.6291
 
Trends
Daily SMA20 0.6293
Daily SMA50 0.6352
Daily SMA100 0.6488
Daily SMA200 0.6617
 
Levels
Previous Daily High 0.6321
Previous Daily Low 0.624
Previous Weekly High 0.6355
Previous Weekly Low 0.6276
Previous Monthly High 0.6452
Previous Monthly Low 0.6249
Daily Fibonacci 38.2% 0.6271
Daily Fibonacci 61.8% 0.629
Daily Pivot Point S1 0.6247
Daily Pivot Point S2 0.6203
Daily Pivot Point S3 0.6166
Daily Pivot Point R1 0.6328
Daily Pivot Point R2 0.6365
Daily Pivot Point R3 0.6408

 

 

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