- Dollar falls on London fix, although US yields remain at weekly highs.
- DXY reverses and turns negative, erasing a 0.60% daily gain.
- NZD/USD – Key support above 0.6150 holds.
The NZD/USD bounced back from near 0.6150 and rose to 0.6200, paring daily losses. The general decline in the US dollar boosted the pair.
The greenback weakened around the London fix, despite US yields hitting new daily highs. On Wall Street, stocks turned decisively positive and commodities erased losses. DXY moved from above 109.00 to 108.40.
US economic data showed a mixed Durable Goods Orders report on Wednesday, with the headline missing expectations, but with positive details. Another report revealed that existing home sales fell 1% in July to the lowest level in two years. A new estimate of second-quarter GDP, weekly jobless claims and the Kansas Fed manufacturing index will be released on Thursday.
New Zealand retail sales data will be released during the Asian session. Later on Thursday, the market will focus on the Jackson Hole symposium. Jerome Powell will speak on Friday.
Crucial support at 0.6150
NZD/USD bias continues to favor downside. Crucial support lies around 0.6150, which capped the upside for the past four days. A break lower would clear the way for more losses, targeting 0.6125 initially and then 0.6095.
To the upside, immediate resistance can be seen at 0.6205, followed by 0.6240.
Technical levels
Source: Fx Street
With 6 years of experience, I bring to the table captivating and informative writing in the world news category. My expertise covers a range of industries, including tourism, technology, forex and stocks. From brief social media posts to in-depth articles, I am dedicated to creating compelling content for various platforms.
