#NZDUSD @ 0.58242 extends gains for the second session due to the correction in the US Dollar.

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• NZD/USD extends gains for the second session due to the correction in the US Dollar.

The pair currently trades last at 0.58242.

The previous day high was 0.5832 while the previous day low was 0.5772. The daily 38.2% Fib levels comes at 0.5809, expected to provide support. Similarly, the daily 61.8% fib level is at 0.5795, expected to provide support.

NZD/USD rebounds from the year-to-date low of 0.5772, trading around 0.5830 during the Asian session on Friday. The pair bid the lowest on Thursday since November 2022 as the New Zealand Dollar (NZD) is contending with pressure, with the situation exacerbated by the recent release of headline Consumer Price Index (CPI) data from the nation.

Additionally, the upbeat Kiwi’s ANZ – Roy Morgan Consumer Confidence could provide minor support for the NZD/USD pair. The report showed an improvement in October, reaching 88.1 from 86.4 previously.

Traders in the NZD/USD pair anticipate the Reserve Bank of New Zealand (RBNZ) to adopt a more accommodative stance on interest rate hikes, contributing to the weakening of the Kiwi pair. Moreover, the deteriorating market sentiment, intensified by recent statements from Israel’s Prime Minister Benjamin Netanyahu regarding a potential ground assault on Gaza, adds to the downward pressure on the pair.

However, the NZD gains much-needed profits despite the better-than-expected economic data from the United States (US). The preliminary US Gross Domestic Product (GDP) Annualized expanded by 4.9% in the third quarter, a remarkable improvement from the previous reading of a 2.1% expansion, exceeding the 4.2% expectations.

However, the weekly Initial Jobless Claims for the week ending October 21 came in at 210,000, up from 200,000 in the previous reading, and slightly higher than the expectations of 208,000.

The US Dollar Index (DXY) receives downward pressure as the US Federal Reserve (Fed) is expected to keep interest rates unchanged in the upcoming meeting next week, hovering near 106.50 at the time of writing. The US Dollar (USD) is facing challenges in maintaining its recent gains, with the decline in US Treasury yields observed in the previous session exerting pressure on USD bulls.

Investors await the US Core Personal Consumption Expenditures (PCE) data on Friday, seeking further impetus on US economic overview.

Technical Levels: Supports and Resistances

NZDUSD currently trading at 0.583 at the time of writing. Pair opened at 0.5821 and is trading with a change of 0.15 % .

The pair remains strongly bearish on the daily time frame. It trades below the 20 SMA @ 0.5914, 50 SMA 0.5922, 100 SMA @ 0.6038 and 200 SMA @ 0.6138.

The previous day high was 0.5832 while the previous day low was 0.5772. The daily 38.2% Fib levels comes at 0.5809, expected to provide support. Similarly, the daily 61.8% fib level is at 0.5795, expected to provide support.

Note the levels of interest below:

• Pivot support is noted at 0.5785, 0.5748, 0.5725
• Pivot resistance is noted at 0.5845, 0.5868, 0.5905

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