NZD/USD sticks gains near mid-0.5900s, over one-week high amid positive risk tone

Source Fxstreet
Apr 24, 2024 02:33

  • NZD/USD gains positive traction for the third straight day amid a softer USD.
  • Tuesday’s disappointing US PMIs and a positive risk tone undermine the buck.
  • Reduced Fed rate cut bets should help limit the USD losses and cap the major.

The NZD/USD pair attracts follow-through buying for the third successive day on Wednesday and climbs to over a one-week high, around mid-0.5900s during the Asian session amid a modest US Dollar (USD) weakness. 

Weaker US PMI prints released on Tuesday indicated that the economic upturn lost momentum at the start of the second quarter. Furthermore, easing geopolitical tensions in the Middle East remains supportive of a generally positive tone around the equity markets and undermines the safe-haven buck, which, in turn, is seen benefitting the risk-sensitive Kiwi. That said, hawkish Federal Reserve (Fed) expectations help limit the downside for the USD and keep a lid on the NZD/USD pair. 

Market participants now seem convinced that the Fed is unlikely to begin its rate-cutting cycle in June and have also scaled back their expectations about the total number of rate cuts in 2024 to less than two, or around 40 basis points. The hawkish outlook, meanwhile, remains supportive of elevated US Treasury bond yields and is likely to act as a tailwind for the Greenback. This, in turn, might hold back traders from placing aggressive bullish bets around the NZD/USD pair and cap the upside.

Investors now look forward to the release of the US Durable Goods Orders for some impetus later during the North American session. The focus, however, will remain glued to the Advance US Q1 GDP print and the US Personal Consumption Expenditures (PCE) Price Index on Thursday and Friday, respectively. This will influence market expectations about the Fed's future policy decisions, which will drive the USD demand and help in determining the near-term trajectory for the NZD/USD pair.

NZD/USD

Overview
Today last price 0.5946
Today Daily Change 0.0013
Today Daily Change % 0.22
Today daily open 0.5933
 
Trends
Daily SMA20 0.5965
Daily SMA50 0.6055
Daily SMA100 0.6119
Daily SMA200 0.6051
 
Levels
Previous Daily High 0.5949
Previous Daily Low 0.5902
Previous Weekly High 0.5954
Previous Weekly Low 0.5851
Previous Monthly High 0.6218
Previous Monthly Low 0.5956
Daily Fibonacci 38.2% 0.5931
Daily Fibonacci 61.8% 0.592
Daily Pivot Point S1 0.5907
Daily Pivot Point S2 0.5881
Daily Pivot Point S3 0.586
Daily Pivot Point R1 0.5954
Daily Pivot Point R2 0.5975
Daily Pivot Point R3 0.6001

 

 

Disclaimer: For information purposes only. Past performance is not indicative of future results.
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