Home NZD/USD climbs to over 1-week high, inching closer to 0.6400 handle
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NZD/USD climbs to over 1-week high, inching closer to 0.6400 handle

  • The USD remains on the defensive amid dovish Fed expectations.
  • Positive trade-related news provided an additional boost to the pair.
  • Traders look forward to the US economic data for a fresh impetus.

The NZD/USD pair climbed to 1-1/2 week tops during the early European session on Thursday, with bulls now eyeing a move towards reclaiming the 0.6400 round figure mark.
 
The pair built on its goodish recovery move from four-year lows set earlier this week and continued gaining positive traction for the third consecutive session on Thursday amid a subdued US Dollar demand, weighed down by firming expectations that the Fed will opt to ease more aggressively at its upcoming meeting in September.

Positive trade-related news added to weaker USD-led up-move

The momentum got an additional boost following some positive trade-related headlines on Thursday, wherein China confirmed that it will resume trade talks with the US in October. The optimism boosted global risk sentiment and remained supportive of the strong bid tone surrounding perceived riskier currencies – like the Kiwi.
 
This coupled with possibilities of some near-term stops being triggered on a sustained move beyond a the 0.6360-65 horizontal resistance further collaborated to the pair’s strong follow-through up-move, though it remains to be seen if bulls are able to capitalize on the momentum and make it through the 0.6400 handle.
 
Moving ahead, Thursday’s US economic docket – highlighting the releases of ADP report on private-sector employment and ISM non-manufacturing PMI – will now be looked upon for some short-term trading opportunities later during the early North-American session.

Technical levels to watch

 

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