NZD/USD steadies near 0.5930, looks to post lowest weekly close since late March


  • NZD/USD fell to fresh multi-week lows on Friday.
  • US Dollar Index recovers toward 100.50 following an early drop.
  • Retail Sales and Industrial Production in US fell at a record pace in April.

After staying relatively quiet near 0.6000 during the Asian trading hours, the NZD/USD pair came under strong bearish pressure and fell to a three week low of 0.5921.

With the markets turning subdues, the pair has gone into a consolidation phase in the last hour and was last seen down 1.13% on the day at 0.5933. On a weekly basis, the pair is down around 80 pips and remains on track to register its lowest weekly close since the last week of March.

Earlier in the day, heightened US-China tensions weighed on the China-proxy kiwi. The US Commerce Department announced that it has banned Huawei from purchasing semiconductors from certain US manufacturers. Responding to that development, Global Times' editor claimed that China could restrict or investigate US companies such as Qualcomm, Cisco and Apple and suspend the purchase of Boeing airplanes.

USD gathers strength after mixed US data

In the second half of the day, the data from the US showed that Retail Sales and Industrial Production in April declined by 16.4% and 11.2%, respectively. Both of these figures were the largest-ever recorded monthly declines in these data. 

Finally, the University of Michigan's Consumer Sentiment Index, surprisingly, recovered modestly to 73.7 in May from 71.8 in April.

Commenting on the Retail Sales data, "with lockdowns starting to be lifted and many parts of the country beginning to re-open, April could very well be the bottom for many retailers, meaning sales should begin to recover in May,” said Wells Fargo analyst.

Although the US Dollar Index edged lower during the early trading hours of the American session, it didn't have a difficult time recovering its losses. At the moment, the index is up 0.15% on the day at 100.42 and looks to gain more than 1% for the week.

Technical levels to watch for

NZD/USD

Overview
Today last price 0.5932
Today Daily Change -0.0072
Today Daily Change % -1.20
Today daily open 0.6004
 
Trends
Daily SMA20 0.6046
Daily SMA50 0.6014
Daily SMA100 0.6258
Daily SMA200 0.6333
 
Levels
Previous Daily High 0.6005
Previous Daily Low 0.5957
Previous Weekly High 0.6148
Previous Weekly Low 0.5994
Previous Monthly High 0.6176
Previous Monthly Low 0.5843
Daily Fibonacci 38.2% 0.5987
Daily Fibonacci 61.8% 0.5975
Daily Pivot Point S1 0.5972
Daily Pivot Point S2 0.5941
Daily Pivot Point S3 0.5924
Daily Pivot Point R1 0.602
Daily Pivot Point R2 0.6037
Daily Pivot Point R3 0.6068

 

 

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