NZD/USD sticks to intraday gains near two-week high, around 0.5975-80 amid softer USD

NZD/USD attracts fresh buyers on Monday and advances to over a two-week high.
A positive risk tone undermines the Greenback and benefits the risk-sensitive Kiwi.
Hawkish Fed expectations should limit the USD losses and cap the upside for the pair.

Haresh Menghani FXStreet

The NZD/USD pair gains strong positive traction on the first day of a new week and rallies to over a two-week high, around the 0.5980-0.5985 region during the Asian session.

Against the backdrop of receding fears of an Israel-Iran war, the latest optimism over Israel-Hamas peace talks in Cairo boosts investors' appetite for riskier assets. This is evident from a generally positive tone around the equity markets, which prompts some selling around the safe-haven US Dollar (USD) and benefits the risk-sensitive Kiwi. That said, hawkish Federal Reserve (Fed) expectations should help limit any meaningful USD downfall and cap the upside for the NZD/USD pair.

Investors seem convinced that the US central bank will keep interest rates higher for longer amid still sticky inflation and the bets were reaffirmed by the release of the Personal Consumption Expenditures (PCE) Price Index on Friday. The hawkish outlook, meanwhile, remains supportive of elevated US Treasury bond yields and supports prospects for the emergence of some USD dip-buying, warranting some caution before positioning for any further appreciating move for the NZD/USD pair.

Traders might also prefer to wait on the sidelines ahead of the crucial two-day FOMC monetary policy meeting starting on Tuesday. Apart from this, investors this week will confront the release of important US macro data scheduled at the beginning of a new month, including the closely-watched Nonfarm Payrolls (NFP) on Friday. This, in turn, will play a key role in influencing the near-term USD price dynamics and help in determining the next leg of a directional move for the NZD/USD pair.

NZD/USD

Overview
Today last price	0.5974
Today Daily Change	0.0032
Today Daily Change %	0.54
Today daily open	0.5942

Trends
Daily SMA20	0.5959
Daily SMA50	0.6045
Daily SMA100	0.6113
Daily SMA200	0.6047

Levels
Previous Daily High	0.597
Previous Daily Low	0.5929
Previous Weekly High	0.597
Previous Weekly Low	0.5886
Previous Monthly High	0.6218
Previous Monthly Low	0.5956
Daily Fibonacci 38.2%	0.5945
Daily Fibonacci 61.8%	0.5954
Daily Pivot Point S1	0.5924
Daily Pivot Point S2	0.5906
Daily Pivot Point S3	0.5883
Daily Pivot Point R1	0.5965
Daily Pivot Point R2	0.5988
Daily Pivot Point R3	0.6006

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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