NZD/USD sticks to gains near 0.6870-75, highest since November 25 ahead of US data

NZD/USD gained traction for the third straight day and shot to the highest level since late November.
The USD extended the post-US CPI downfall and was seen as a key factor that provided a goodish lift.
A positive risk tone further undermined the safe-haven USD and benefitted the perceived riskier kiwi.

Haresh Menghani FXStreet

The NZD/USD pair maintained its bid tone through the early North American session and was last seen trading near the 0.6870-75 region, or the highest level since November 25.

The pair added to this week's strong move up and gained strong follow-through traction for the third successive day on Thursday amid sustained selling bias surrounding the US dollar. The momentum took along some short-term trading stops placed near the 0.6850-55 region, which prompted some technical buying and provided an additional boost to the NZD/USD pair.

Data released on Wednesday showed that the headline US CPI surged to the highest level since June 1982 and core CPI registered the biggest advance since 1991. The stronger prints reinforced the need for quicker interest rate hikes, though were not deemed worrying enough to change the Fed's already hawkish outlook and continued weighing on the greenback.

Apart from this, a generally positive tone around the equity markets was seen as another factor that undermined the greenback's relative safe-haven status and benefitted the perceived riskier kiwi. With the latest leg up, the NZD/USD pair now seems to have confirmed a bullish breakout and seems poised to build on its recovery from 2021 low, around the 0.6700 mark.

Market participants now look forward to the US economic docket, featuring the release of the Producer Price Index and Weekly Initial Jobless Claims. This, along with Fed Governor Lael Brainard's testimony on her nomination as Vice Chair and the broader market risk sentiment, will influence the USD and provide a fresh impetus to the NZD/USD pair.

Technical levels to watch

NZD/USD

Overview
Today last price	0.6871
Today Daily Change	0.0015
Today Daily Change %	0.22
Today daily open	0.6856

Trends
Daily SMA20	0.6795
Daily SMA50	0.6866
Daily SMA100	0.6962
Daily SMA200	0.7025

Levels
Previous Daily High	0.6858
Previous Daily Low	0.6773
Previous Weekly High	0.6857
Previous Weekly Low	0.6733
Previous Monthly High	0.6891
Previous Monthly Low	0.6701
Daily Fibonacci 38.2%	0.6825
Daily Fibonacci 61.8%	0.6805
Daily Pivot Point S1	0.68
Daily Pivot Point S2	0.6744
Daily Pivot Point S3	0.6715
Daily Pivot Point R1	0.6885
Daily Pivot Point R2	0.6914
Daily Pivot Point R3	0.697

Author

Haresh Menghani

FXStreet

Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.

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