- NZD/USD remains on track to end the third day lower this week.
- US Dollar Index struggles to rise above 95.
The NZD/USD pair dropped to its lowest level in more than a month at 0.6865 earlier in the NA session and started moving in a tight range after finding a support there. As of writing, the pair was trading at 0.6875, losing 30 pips, or 0.4%, on the day.
Amid a lack of fundamental drivers that could have a significant impact on the trading action in the FX markets, the US Dollar Index fluctuated its recent range below the 95 mark. Nonetheless, the fact that the index hasn't made a deep correction yet suggests that USD buyers are waiting for the next opportunity to present itself. At the moment, the DXY is virtually unchanged on the day at 94.66.
On Wednesday, the only data from the U.S. showed that existing home sales decreased by 0.4% in May. Meanwhile, speaking at the ECB's panel today, FOMC Governor Fed Powell reiterated that there was a strong case for gradual rate hikes.
In the early Asian session on Thursday, the Statistics New Zealand is going to release the GDP growth numbers for the first quarter. Experts expect the real-GDP to grow by 0.5% and 2.7% on a quarterly and a yearly basis respectively. A positive reading is likely to help the kiwi show some resilience against the greenback.
Technical outlook
The pair could face the first support at 0.6850 (May 16 low) ahead of 0.6800 (psychological level) and 0.6775 (Nov. 17 low). On the upside, resistances align at 0.6940 (Jun. 19 high), 0.6990/0.7000 (50-DMA/psychological level) and 0.7060 (Jun. 6 high). The RSI indicator on the daily chart remains a little above the 30 mark, suggesting that the pair could edge lower before becoming technically oversold.
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
AUD/USD holds above 0.6500 in thin trading
The Australian Dollar managed to recover ground against its American rival after AUD/USD fell to 0.6484. The upbeat tone of Wall Street underpinned the Aussie despite broad US Dollar strength and tepid Australian data.
EUR/USD comfortable below 1.0800 lower lows at sight
The EUR/USD pair lost ground on Thursday and settled near a fresh March low of 1.0774. Strong US data and hawkish Fed speakers comments lead the way ahead of the release of the US PCE Price Index on Friday.
Gold pulls away from daily highs, holds above $2,200
Gold retreats from daily highs but holds comfortably above $2,200 in the American session on Thursday. The benchmark 10-year US Treasury bond yield stays near 4.2% after upbeat US data and makes it difficult for XAU/USD to gather further bullish momentum.
Google starts indexing Bitcoin addresses
Bitcoin address data is live on Google search results after users realized on Thursday that the tech giant started indexing Bitcoin blockchain data. However, mixed reactions have followed the tech giant's reversed stance on the cryptocurrency.
A Hollywood ending for fourth quarter GDP
The latest revisions put Q4 GDP at 3.4%, the second fastest quarterly growth rate in two years. Much of the upside was attributable to stronger consumer spending, yet fresh profits data affirmed it was a good quarter for the bottom line as well with profits up by the most since the Q2-2022.