NZD/USD remains firmer around 0.5950 due to improved risk appetite

Source Fxstreet
Apr 26, 2024 05:20
  • NZD/USD remains steady due to risk appetite improvements for risk-sensitive currencies.
  • The gains of the US Dollar could be limited due to the lower US Treasury yields.
  • New Zealand’s ANZ-Roy Morgan Consumer Confidence decreased to 82.1 in April, reaching its lowest level since 2008.

The NZD/USD pair showed positive movement, trading around 0.5960 during the Asian session on Friday. The New Zealand Dollar (NZD), known for its sensitivity to risk sentiment, gained momentum as risk appetite improved, supporting the NZD/USD pair. However, the pair trimmed some of its intraday gains due to a rebound in the US Dollar (USD).

The US Dollar Index (DXY), which measures the USD against six major currencies, edges up to near 105.70, although its gains may be limited by a downward correction in US Treasury yields, contributing to the USD's weakness.

On Thursday, mixed preliminary data from the United States (US) put pressure on the Greenback. The US Gross Domestic Product Annualized (Q1) expanded at a slower pace of 1.6% compared to the previous reading of 3.4%, falling short of market expectations of 2.5%. This slowdown suggests potential headwinds or slowdowns in various sectors of the economy.

However, US consumer prices have shown resilience, with the Personal Consumption Expenditures (QoQ) Price Index for Q1 increasing at a 3.7% annual rate. This exceeded both market expectations of 3.4% and the previous reading of 2.0%, indicating prevailing inflationary pressures that could influence Federal Reserve (Fed) monetary policy decisions.

On the Kiwi's side, Friday's ANZ-Roy Morgan Consumer Confidence slipped to 82.1 in April, from the previous reading of 86.4. This has marked its lowest level since 2008. Despite this decline, New Zealand's consumer confidence remains relatively elevated. Additionally, Stats NZ reported a trade surplus in March, driven by exports reaching a 10-month high while imports fell to a 2-month low. The decrease in imports reflects a sluggish economy, as both households and businesses grapple with the impact of high interest rates.

Looking ahead, market attention is now focused on the US Personal Consumption Expenditures (PCE) Price Index data for March, slated for release on Friday. This data is expected to garner significant interest from investors as they assess its implications for inflationary pressures and potential effects on US monetary policy.

NZD/USD

Overview
Today last price 0.596
Today Daily Change 0.0012
Today Daily Change % 0.20
Today daily open 0.5948
 
Trends
Daily SMA20 0.596
Daily SMA50 0.6049
Daily SMA100 0.6115
Daily SMA200 0.6048
 
Levels
Previous Daily High 0.5969
Previous Daily Low 0.5919
Previous Weekly High 0.5954
Previous Weekly Low 0.5851
Previous Monthly High 0.6218
Previous Monthly Low 0.5956
Daily Fibonacci 38.2% 0.595
Daily Fibonacci 61.8% 0.5938
Daily Pivot Point S1 0.5922
Daily Pivot Point S2 0.5895
Daily Pivot Point S3 0.5871
Daily Pivot Point R1 0.5972
Daily Pivot Point R2 0.5996
Daily Pivot Point R3 0.6023

 

 

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