#NZDUSD @ 0.62780 has attempted recovery from 0.6280 as investors await US NFP for further action. (Pivot Orderbook analysis)
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- NZD/USD has attempted recovery from 0.6280 as investors await US NFP for further action.
- Fed confirmed after a 25bp interest rate hike that further policy action will be more data-dependent.
- Investors dumped US equities as fears banking crisis overshadowed optimism built on neutral guidance delivered by the Fed.
The pair currently trades last at 0.62780.
The previous day high was 0.6261 while the previous day low was 0.6205. The daily 38.2% Fib levels comes at 0.6239, expected to provide support. Similarly, the daily 61.8% fib level is at 0.6226, expected to provide support.
The NZD/USD pair has shown a recovery move of around 0.6280 in the early Asian session. Earlier, the Kiwi asset dropped sharply after failing to hit the round-level resistance of 0.6300. The correction in the Kiwi asset came due to a recovery move in the US Dollar Index (DXY). The USD index has moved higher after defending its crucial support of 101.43.
The USD Index has gained traction as the focus has shifted to the United States Nonfarm Payrolls (NFP) data. Federal Reserve (Fed) chair Jerome Powell confirmed in the monetary policy statement after a 25 basis point (bp) interest rate hike that further policy action will be more data-dependent. US labor market conditions have broadly remained extremely tight, therefore, the NFP data holds significant importance as upbeat figures could force the Fed to reconsider its plan of pausing interest rate hikes from June.
According to the consensus, the US economy added 179K in April, lower than the former release of 236K. The Unemployment Rate is seen unchanged at 3.5%.
Meanwhile, S&P500 settled Thursday’s session on a negative note. A three consecutive bearish closing in S&P500 is indicating the poor risk appetite of the market participants. Investors dumped US equities as fears banking crisis inspired by consideration of strategic options for potential sale by PacWest Bancorp’s overshadowed optimism built on neutral guidance delivered by the Fed.
Also, a recovery in the USD Index provided some support to the US Treasury yields. The yields offered on 10-year US government bonds rebounded to near 3.38%.
On the New Zealand Dollar front, Caixin Services PMI (April) data will be keenly watched. The economic data is seen at 56.5 lower than the former release of 57.8. It is worth noting that New Zealand is one of the leading trading partners of China and weak Chinese service activity would impact the New Zealand Dollar.
Technical Levels: Supports and Resistances
NZDUSD currently trading at 0.6282 at the time of writing. Pair opened at 0.623 and is trading with a change of 0.83 % .
| Overview | Overview.1 | |
|---|---|---|
| 0 | Today last price | 0.6282 |
| 1 | Today Daily Change | 0.0052 |
| 2 | Today Daily Change % | 0.8300 |
| 3 | Today daily open | 0.6230 |
The pair remains strongly bullish on the daily timeframe. It trades above its 20 SMA @ 0.6195, 50 SMA 0.6207, 100 SMA @ 0.6281 and 200 SMA @ 0.616.
| Trends | Trends.1 | |
|---|---|---|
| 0 | Daily SMA20 | 0.6195 |
| 1 | Daily SMA50 | 0.6207 |
| 2 | Daily SMA100 | 0.6281 |
| 3 | Daily SMA200 | 0.6160 |
The previous day high was 0.6261 while the previous day low was 0.6205. The daily 38.2% Fib levels comes at 0.6239, expected to provide support. Similarly, the daily 61.8% fib level is at 0.6226, expected to provide support.
Note the levels of interest below:
- Pivot support is noted at 0.6203, 0.6176, 0.6147
- Pivot resistance is noted at 0.6259, 0.6288, 0.6314
| Levels | Levels.1 |
|---|---|
| Previous Daily High | 0.6261 |
| Previous Daily Low | 0.6205 |
| Previous Weekly High | 0.6189 |
| Previous Weekly Low | 0.6111 |
| Previous Monthly High | 0.6389 |
| Previous Monthly Low | 0.6111 |
| Daily Fibonacci 38.2% | 0.6239 |
| Daily Fibonacci 61.8% | 0.6226 |
| Daily Pivot Point S1 | 0.6203 |
| Daily Pivot Point S2 | 0.6176 |
| Daily Pivot Point S3 | 0.6147 |
| Daily Pivot Point R1 | 0.6259 |
| Daily Pivot Point R2 | 0.6288 |
| Daily Pivot Point R3 | 0.6314 |
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