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NZD/USD holds strong intraday gains at 1-month highs above 0.6450

  • NZD/USD regains strong positive traction and jumps to more than a month highs on Wednesday.
  • Optimism about the recovery of the Chinese economy strongly boosts the risk-sensitive NZD.
  • The bulls seem to be unaffected by the strengthening dollar and could now try to recapture the 0.6500 level.

The pair NZD/USD attracts new purchases after an initial drop to the 0.6375 area and jumps to new highs of more than a month during the European session on Wednesday. The pair is currently hovering around the 0.6460 zone, up more than 0.45% on the day, and has now approached the multi-month high hit in December.

The Chinese macroeconomic datamostly optimistic, published on Monday, together with the new stimulus measures announced by the Chinese government, fueled optimism about a strong recovery of the world’s second largest economy. This, in turn, boosts investor confidence, which benefits the risk-sensitive NZD and provides a nice boost to the NZD/USD pair. Momentum does not appear to be affected by a resurgence in demand for the US dollar, fueled by the Japanese yen sell-off following the Bank of Japan’s monetary policy decision.

Meanwhile, the strength of the dollar remains limited in a context of increasingly firm expectations of less aggressive monetary policy tightening by the Fed. Indeed, markets now seem convinced that the US central bank will soften its hawkish stance on signs of easing inflationary pressure and have been pricing in a smaller rate hike of 25 basis points in February. . This leads to a further drop in US Treasury yields, which should act as a headwind for the USD and favor NZD/USD bulls.

Even from a technical perspective, sustained strength above the upper end of a one and a half week range supports the prospects of a further short-term bullish move for the NZD/USD pair. Therefore, a continuation move higher, towards the recovery of the psychological level of 0.6500, now seems a clear possibility. The US economic agenda, with the monthly Producer Price Index and Retail Sales as main indicators, will focus the attention of investors at the beginning of the American session.

NZD/USD technical levels


Last price today 0.6455
Today I change daily 0.0027
today’s daily variation 0.42
today’s daily opening 0.6428
daily SMA20 0.6328
daily SMA50 0.6285
daily SMA100 0.6054
daily SMA200 0.6206
previous daily high 0.6438
previous daily low 0.6366
Previous Weekly High 0.6418
previous weekly low 0.6314
Previous Monthly High 0.6514
Previous monthly minimum 0.623
Fibonacci daily 38.2 0.6411
Fibonacci 61.8% daily 0.6394
Daily Pivot Point S1 0.6383
Daily Pivot Point S2 0.6338
Daily Pivot Point S3 0.6311
Daily Pivot Point R1 0.6456
Daily Pivot Point R2 0.6483
Daily Pivot Point R3 0.6528

Source: Fx Street

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