NZD/USD rises above the 50-DMA at 0.6729 amid increasing fighting between Russia

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  • NZD/USD is up 0.64% on the week.
  • Russia’s attack on Ukraine extends for the third day in a row amid reports that Putin is open to talks with Ukraine.
  • NZD/USD Technical Outlook: Neutral bias but 50 DMA capped Friday’s upside move.

Friday’s trading session so far has seen an improvement in risk appetite as European and US equities trade higher, ahead of the weekend in a busy week in financial markets. In the FX space, risk-sensitive currencies such as antipodeans led by the NZD and AUD gain, while those in safe-haven status fall. At press time, NZD/USD is higher, trading at 0.6730.

Developments in the conflict between Ukraine and Russia

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Russia’s attack on Ukraine continues for the third day in a row. However, Russia’s Vladimir Putin is reported to be sending a delegation to Minsk for talks with Ukraine. The headline positively changed the market mood, increasing demand for riskier assets.

It is worth noting that Bloomberg reported that the fall of Kiev to Russian forces could occur in the next 24/48 hours. That could spur a change in market sentiment, increasing the appeal for safe-haven status.

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During the Asian session, Reserve Bank of New Zealand (RBNZ) Governor Adrian Orr crossed the wires, saying: “We are particularly concerned about inflation expectations,” considering conditions in Ukraine. The Governor also commented that he would “maintain the ability to move rates faster if necessary.”

The US economic agenda presented orders for durable goods for January, at 1.6% monthly, higher than the estimated 0.6%. For its part, the Federal Reserve’s favorite inflation gauge, PCE, rose to 6.1% y/y, higher than the 5.8% expected, while core PCE rose to 5.2%, higher than the 5.1% expected. In addition, the final assessment of consumer sentiment from the University of Michigan for February increased to 62.8, better than the 61.7

NZD/USD Price Forecast: Technical Outlook

NZD/USD has a neutral bias, although it trades above the 50-day moving average (DMA) at 0.6724, indicating that an uptrend would accelerate but would be subject to Friday’s daily close above the previous one. .

IF that scenario plays out as planned, NZD/USD would be exposed to upward pressure. That said, the first resistance for the NZD/USD would be the Feb 23 high at 0.6809. Once cleared, the next resistance level would be the 100 DMA at 0.6850. A break of the latter would expose the Jan 13 daily high at 0.6890.

Additional technical levels

NZD/USD

Panorama
Last Price Today 0.6739
Today’s Daily Change 0.0031
Today’s Daily Change % 0.46
Today’s Daily Opening 0.6708
Trends
20 Daily SMA 0.6659
50 Daily SMA 0.6728
100 Daily SMA 0.6855
200 Daily SMA 0.6948
levels
Previous Daily High 0.6777
Previous Daily Minimum 0.663
Previous Maximum Weekly 0.673
Previous Weekly Minimum 0.6593
Monthly Prior Maximum 0.6891
Previous Monthly Minimum 0.6529
Daily Fibonacci 38.2% 0.6686
Daily Fibonacci 61.8% 0.6721
Daily Pivot Point S1 0.6633
Daily Pivot Point S2 0.6558
Daily Pivot Point S3 0.6487
Daily Pivot Point R1 0.678
Daily Pivot Point R2 0.6852
Daily Pivot Point R3 0.6927

Source: Fx Street

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