• The USD bulls remain on the defensive amid signs of easing inflationary pressure.
• US-China trade optimism/risk-on mood remains supportive of the positive move.
• A sustained move beyond the 0.6900 handle needed to confirm any further gains.
After an initial dip to 0.6840 area, the NZD/USD pair regained some positive traction and was now seen building on the overnight late rebound from two-week lows.
The pair extended last week's retracement slide from near six-month tops and lost some additional ground on Wednesday. The pair broke through one-week old trading range support but managed to find some buying interest at lower level amid some renewed US Dollar selling.
A combination of factors - signs of easing US-China trade tensions and slowing inflationary pressure in the US, exerted some fresh downward pressure on the greenback and turned out to be one of the key factors extending some support to the major.
The USD bulls held on the defensive and kept pushing the pair higher through the Asian session on Thursday. Bulls largely shrugged off NZ Treasury's forecast for slower economic growth, and a smaller surplus, and rather took cues from the annual average wage growth forecast of more than 3% a year during the next five years.
It would now be interesting to see if the pair is able to build on the intraday positive momentum or continues with its struggle to sustain above the 0.6900 handle amid absent relevant market moving economic releases on Thursday.
Technical levels to watch
NZD/USD
Overview:
Today Last Price: 0.6872
Today Daily change: 14 pips
Today Daily change %: 0.204%
Today Daily Open: 0.6858
Trends:
Previous Daily SMA20: 0.6852
Previous Daily SMA50: 0.6692
Previous Daily SMA100: 0.6669
Previous Daily SMA200: 0.6852
Levels:
Previous Daily High: 0.6901
Previous Daily Low: 0.6825
Previous Weekly High: 0.697
Previous Weekly Low: 0.6846
Previous Monthly High: 0.6887
Previous Monthly Low: 0.6514
Previous Daily Fibonacci 38.2%: 0.6854
Previous Daily Fibonacci 61.8%: 0.6872
Previous Daily Pivot Point S1: 0.6822
Previous Daily Pivot Point S2: 0.6785
Previous Daily Pivot Point S3: 0.6745
Previous Daily Pivot Point R1: 0.6898
Previous Daily Pivot Point R2: 0.6938
Previous Daily Pivot Point R3: 0.6974
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
USD/JPY holds positive ground around 151.50 following Japanese CPI data
The USD/JPY pair holds positive ground for the second consecutive day near 151.45 on Friday during the early Asian trading hours. The cautious approach from the Bank of Japan to keep monetary conditions accommodative exerts some selling pressure on the Japanese Yen.
AUD/USD depreciates on risk aversion amid a stronger US Dollar
AUD/USD extends its losses for the second successive session on Friday. However, market activity is expected to be subdued due to light trading on Good Friday. Meanwhile, the US Dollar strengthens as recent data indicates annualized economic expansion in the United States, driven by consumer spending.
Gold price finishes Thursday’s session set to reach new all-time highs
Gold price rallied during the North American session on Thursday and hit a new all-time high of $2,225 in the mid-North American session. Precious metal prices are trending higher even though US Treasury yields are advancing, underpinning the Greenback.
Optimism price could fall as nearly $90 million worth of OP tokens is due flood markets
Optimism volatility has shrunk in the ours leading to the network’s cliff unlock. It joins the likes of dYdX and Sui, which have similar events on their calendars. As token unlocks are often considered bearish catalysts, investors should brace for a reaction after the event.
Bears have been standing before a steamroller so far this year
Despite a pushback on rate cuts from Christopher Waller, and what was supposed to be cautious trading sentiment ahead of critical US inflation data released later on Friday, the S&P 500 rose on Thursday, marking its best first-quarter performance in five years.