• 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
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