NZD/USD stays relatively calm below 0.7200 as focus shifts to US data

NZD/USD trades in the positive territory on Friday.
US Dollar Index drops below 91.00 ahead of American session.
Investors await New Home Sales and preliminary PMI figures from US.

Eren Sengezer FXStreet

The NZD/USD pair broke below 0.7200 on Thursday and closed in the negative territory pressured by a negative shift witnessed in market sentiment in the second half of the day. On Friday, the pair gained traction amid broad-based USD weakness and was last seen gaining 0.15% on a daily basis at 0.7183.

DXY turns south on Friday

The data from New Zealand revealed on Friday that Credit Card Sales in March expanded by 2.2% on a yearly basis following February's contraction of 12.6% and helped the kiwi gather strength.

Reports suggesting that US President Joe Biden will propose hiking capital gain tax rates on wealth to fund additional spending on families and child care caused Wall Street's main indexes to close in the negative territory on Thursday.

The US Dollar Index (DXY) edged higher on this development but struggled to preserve its bullish momentum in the absence of significant fundamental drivers on Friday. Ahead of the IHS Markit's preliminary Manufacturing and Services PMI, the DXY is losing nearly 0.4% at 90.93.

Meanwhile, Wall Street's main indexes remain on track to start the day modestly higher with the S&P 500 Futures rising 0.2% ahead of the opening bell. If risk flows dominate the financial markets in the second half of the day, NZD/USD could try to push higher and post its best weekly close since February.

Technical levels to watch for

NZD/USD

Overview
Today last price	0.7181
Today Daily Change	0.0007
Today Daily Change %	0.10
Today daily open	0.7174

Trends
Daily SMA20	0.7076
Daily SMA50	0.7154
Daily SMA100	0.7151
Daily SMA200	0.6924

Levels
Previous Daily High	0.7215
Previous Daily Low	0.7145
Previous Weekly High	0.7181
Previous Weekly Low	0.7004
Previous Monthly High	0.7308
Previous Monthly Low	0.6943
Daily Fibonacci 38.2%	0.7172
Daily Fibonacci 61.8%	0.7188
Daily Pivot Point S1	0.7141
Daily Pivot Point S2	0.7108
Daily Pivot Point S3	0.7071
Daily Pivot Point R1	0.7211
Daily Pivot Point R2	0.7248
Daily Pivot Point R3	0.728

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.

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