- Dollar weakness continues to support further increases in the NZD / USD.
- Traders eyeing more US data and statements from Fed officials.
The NZD / USD is rising for the third day in a row and looks strengthened from a technical point of view after confirming the break at 0.6850. The pair rose to 0.6884, the highest since Nov. 25, and in the run-up to the US data release it is still close to the high.
The NZD / USD advance has so far slowed below 0.6900 and just below the 55-day moving average. This implies that a break of these levels would leave the pair ready for more raises, with the next resistance at 0.6920. A return below 0.6850 would drive NZD / USD bullish and a return below 0.6795 would point to a renewal of downward pressures.
The dollar it remains weak in the market, being the key factor behind the pair’s gains. Treasury yields are rising slightly on Thursday, helping to limit the USD’s losses. DXY falls for the third day in a row and is trading at monthly lows.
Traders are waiting for US wholesale inflation and unemployment benefit request data to be released at 13:30 GMT. They will also present more officials of the Federal Reserve, among which the presentation of Lael Brainard before a Senate committee for confirmation as vice president of the central bank stands out. On Friday it will be the turn of China’s foreign trade figures.
Technical levels
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