The NZDUSD currency pair, trading at 0.59797, bounces back to 0.5977 due to a decrease in the value of the US Dollar.

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• NZD/USD rebounds to 0.5977 amid a decline of the US Dollar.

The pair currently trades last at 0.59797.

The previous day high was 0.5974 while the previous day low was 0.5913. The daily 38.2% Fib levels comes at 0.5951, expected to provide support. Similarly, the daily 61.8% fib level is at 0.5936, expected to provide support.

The NZD/USD pair gains traction above the mid-0.5900s during the early Asian session on Friday. The rebound of the pair is supported by a correction of the US Dollar (USD) and lower US Treasury yields. Meanwhile, the US Dollar Index (DXY) edges lower to 106.10 after retreating from 106.83, the highest since November. NZD/USD currently trades bear 0.5977, gaining 0.28% for the day.

The US Bureau of Economic Analysis (BEA) reported on Thursday that Real Gross Domestic Product (GDP) in the US expanded at an annual rate of 2.1% in the second quarter (Q2), as expected. Additionally, the US Department of Labor revealed that the Initial Jobless Claims for the week ending of September 22 climbed to 204K from 202K in the previous week, below the 215K anticipated. The Pending Home Sales fell 7.1% MoM in August, compared to expectation for a 1.0% drop MoM.

Earlier Friday, Federal Reserve Bank of Richmond President Thomas Barkin stated that the Fed holding steady at the September FOMC meeting was appropriate and Fed has time to see data before deciding what’s next for rates. On Thursday, Chicago Fed President Austan Goolsbee said the central bank will return inflation to target and has a chance to do something rare by accomplishing that without a recession. Richmond Fed President Thomas Barkin remarked that the past five months of inflation data have been upbeat but that it is too early to determine what monetary policy would be next. Barkin mentioned that lost data due to the government shutdown would complicate understanding the economy.

Investors will assess the narrative of a higher for longer rate in the US against the growth risks posed by the possibility of an imminent US government shutdown. This, in turn, might cap the upside of the Greenback and act as a tailwind for the NZD/USD pair.

On the Kiwi front, the latest data on Friday from the ANZ reported that New Zealand’s Roy Morgan Consumer Confidence for September came in at 86.4 from 85.0 in the previous reading. Earlier, ANZ Business Confidence for September rose to 1.5 from a 3.7 decline in August while the ANZ Activity Outlook improved to 10.9 in September from 11.2% in the previous reading. The market anticipates the Reserve Bank of New Zealand (RBNZ) to maintain the current monetary policy unchanged in next week’s policy meeting, which might limit the Kiwi’s upside.

Market players will focus on the US Core Personal Consumption Expenditure (PCE) Price Index, the Fed’s preferred measure of consumer inflation due later on Friday. The annual consumer inflation for August is expected to decline from 4.2% YoY to 3.9%. These figures could give a clear direction for the NZD/USD pair.

Technical Levels: Supports and Resistances

NZDUSD currently trading at 0.5974 at the time of writing. Pair opened at 0.5961 and is trading with a change of 0.22 % .

The pair is trading above its 20 Daily moving average @ 0.5921, below its 50 Daily moving average @ 0.5992 , below its 100 Daily moving average @ 0.6081 and below its 200 Daily moving average @ 0.618

The previous day high was 0.5974 while the previous day low was 0.5913. The daily 38.2% Fib levels comes at 0.5951, expected to provide support. Similarly, the daily 61.8% fib level is at 0.5936, expected to provide support.

Note the levels of interest below:

• Pivot support is noted at 0.5925, 0.5888, 0.5864
• Pivot resistance is noted at 0.5986, 0.601, 0.6047

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