#NZDUSD @ 0.58668 has climbed above 0.5860 after a consolidation breakout as the risk-on profile recovers. (Pivot Orderbook analysis)

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• NZD/USD has climbed above 0.5860 after a consolidation breakout as the risk-on profile recovers.
• The DXY has remained subdued in the entire Tokyo session ahead of key US economic data.
• Higher projections for durable goods demand in times of escalating core CPI could delight the Fed.

The pair currently trades last at 0.58668.

The previous day high was 0.5846 while the previous day low was 0.5725. The daily 38.2% Fib levels comes at 0.58, expected to provide support. Similarly, the daily 61.8% fib level is at 0.5771, expected to provide support.

The NZD/USD pair has given a north-side break of the consolidation formed in a narrow range of 0.5818-0.5850 in the Tokyo session. The asset is advancing firmly and has refreshed its day’s high at 0.5860 as the market sentiment has rebounded firmly.

S&P500 futures have picked bids after a corrective Wednesday, which indicates that long liquidation could entirely terminate and the upside journey will resume. The 500-stock basket witnessed losses after a three-day rally on Wednesday as tepid guidance by tech-giant Microsoft (MSFT) weighed pressure on technology stocks.

As the risk appetite theme is regaining strength, the safe-haven appeal could trim further and the US dollar index (DXY) may witness extreme volatility. The DXY has remained sideways in the entire Tokyo session and a subdued performance could further. The 10-year US Treasury yields have rebounded after dropping below 4%. At the press time, the yields were being offered at 4.03%, 0.32% above Wednesday’s close.

Going forward, US economic data will be a key trigger for decisive action. Starting from the US Gross Domestic Product (GDP) data, expectations claim a growth rate of 2.4% for the third quarter against a drop of 0.6%. Also, the demand for durable goods is seen higher at 0.6%. An increment in durable goods orders despite the soaring core Consumer Price Index (CPI) could delight the Federal Reserve (Fed).

The show-stopper US core Personal Consumption Expenditure (PCE) data is seen lower at 4.7% vs. the prior release of 4.7%.

Technical Levels: Supports and Resistances

NZDUSD currently trading at 0.5861 at the time of writing. Pair opened at 0.5834 and is trading with a change of 0.46 % .

The pair is trading above its 20 Daily moving average @ 0.567, below its 50 Daily moving average @ 0.5885 , below its 100 Daily moving average @ 0.6074 and below its 200 Daily moving average @ 0.6372

The previous day high was 0.5846 while the previous day low was 0.5725. The daily 38.2% Fib levels comes at 0.58, expected to provide support. Similarly, the daily 61.8% fib level is at 0.5771, expected to provide support.

Note the levels of interest below:

• Pivot support is noted at 0.5758, 0.5681, 0.5638
• Pivot resistance is noted at 0.5878, 0.5922, 0.5998

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