NZD / USD watching a test of the 0.7200 level amid the dollar’s decline

• NZD / USD advanced on Thursday as the USD fell, but failed to regain 0.7200.
• The pair has been in the middle of its range for the past two weeks.

He NZD / USD It spent most of Thursday’s trading higher amid a rebound in the market’s broad appetite for risk following the liquidation of risky assets on Wednesday. Having dropped almost as low as the 0.7100 level before the start of the US session, the pair has since rallied towards 0.7200 and is currently trading at 0.7180, up 0.4% or around 30 pips on the day. Trading just below 0.7200 put the NZD / USD right in the middle of the pair’s range for the past two weeks; 0.7250 has acted as a ceiling for price action and 0.7100 as a bottom.

Market analysts say another factor driving equities higher on Thursday, and thus hurting demand for JPY as a safe haven, is buying on dips. Looking beyond all the retail-driven speculative mania that has taken place (and dominated the headlines) in recent days, the main fundamental factors that have supported the record rally in US stocks from lows March 2020 at current all-time highs remain virtually unchanged; 1) Real yields in the US and international debt markets remain at record lows as a result of ultra-accommodative monetary policy in most major global central banks, meaning that TINA remains in place (a acronym meaning there is no alternative to investing in stocks if you want to for a decent return) and 2) although they are facing setbacks, mass vaccination programs are underway in major developed economies, which means they are still expects an aggressive post-pandemic global economic recovery to begin in the coming months

Technical levels