- NZD/USD stages a solid intraday bounce from the 0.5900 neighbourhood, or 2-1/2 week lows.
- The USD edged lower after another disastrous jobless claims report and remained supportive.
- Technical buying above 0.60 mark triggered the latest leg of a sudden spike in the past hour.
The NZD/USD pair caught some aggressive bids and surged through the key 0.60 psychological mark during the early North-American session.
The pair built on its goodish intraday recovery move from the vicinity of the 0.5900 round-figure mark and picked up some additional pace in the last hour amid a modest US dollar pullback.
The USD surrendered a major part of its early gains after the latest Initial Weekly Jobless Claims report showed that 4.43 million people filed for unemployment-related benefits last week.
The figure was lower than the previous week’s reading of 5.237 million and down around 50% from the peak at the start of April, albeit illustrated the extent of economic damage caused by lockdowns.
This comes amid a positive trading sentiment around the US equity futures, which extended some support to perceived riskier currencies, including the kiwi and remained supportive of the uptick.
Meanwhile, possibilities of some short-term trading stops being triggered above the 0.60 mark could further be attributed to the pair’s latest leg of a sudden spike over the past hour or so.
The pair has now rallied over 100 pips from 2-1/2 week lows set earlier this Thursday, though worries over the economic fallout from the coronavirus pandemic might cap any further gains.
Hence, it will be prudent to wait for some strong follow-through strength before confirming that momentum is backed by any genuine buying or is sponsored by some short-covering move.
Technical levels to watch
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