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

 

 

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.

Feed news

Latest Forex News


Latest Forex News

Editors’ Picks

EUR/USD falls below 1.1850 as US consumer sentiment beats

EUR/USD is trading under1.1850, off the previous levels as US consumer sentiment beat estimates with 78.9 points. The Fed refrained from adding more stimulus, supporting the dollar earlier in the week. Investors are eyeing fiscal stimulus talks.

EUR/USD News

GBP/USD falls as the EU reportedly objects Johnson's bill

GBP/USD is trading around 1.2950, off the highs. According to reports, the EU remains opposed to UK PM Johnson's controversial bill, which violates the Brexit accord. 

GBP/USD News

XAU/USD struggles to move back above 100-hour SMA

Gold regained some positive traction on the last trading day of the week and recovered a part of the previous day's losses to over one-week lows. The commodity held on to its intraday gains and traded above the $1950 level through the mid-European session.

Gold News

Ethereum hits Bitcoin's bid to lead the market

Bitcoin risks dominance after the strong rise of Ethereum. Technical indicators show some significant discrepancies keeping the stress on the board. Sentiment levels are improving and bordering on optimism.

Read more

After yesterday's JMMC meeting WTI settles near $40 per barrel

WTI has been through a rollercoaster this week. The liquid gold has been in a downtrend leading into the OPEC+ JMMC meeting and then reversed the whole move. At the meeting the group agreed to extend the compensation period for overproduction till the end of December. 

Oil News

Forex MAJORS

Cryptocurrencies

Signatures