- A combination of factors assisted NZD/USD to gain traction for the sixth consecutive session.
- The USD remained depressed amid doubts over the sustainability of the US economic recovery.
- Comments by NZ FinMin Robertson indicated that RBNZ could stay pat and remained supportive.
The NZD/USD pair continued scaling higher through the early European session and shot to the 0.6800 neighbourhood, or the highest level since April 2019 in the last hour.
The pair built on last week’s goodish bounce from the 0.6600 round-figure mark and gained strong positive traction for the sixth consecutive session on Friday. The uptick also marked the seventh day of a positive move in the previous eight and was supported by a combination of factors.
The US dollar came under some renewed selling pressure on Thursday amid doubts over the sustainability of the US economic recovery. The market worries resurfaced following the release of Thursday’s rather unimpressive Initial Jobless Claims, Philly Fed Manufacturing Index and housing market data.
On the other hand, the kiwi got a boost after the New Zealand Financial Minister, Grant Robertson, said that the RBNZ is committed to 0.25% OCR until March. The comments disappointed analysts anticipating a dovish tone at the upcoming RBNZ monetary policy review on September 23rd.
Friday’s strong positive move could further be attributed to some technical buying above the 0.6760-70 supply zone. A subsequent strength beyond the 0.6800 round-figure mark will be seen as a fresh trigger for bullish traders and pave the way for a further near-term appreciating move.
Market participants now look forward to the release of the Michigan Consumer Sentiment Index for September, scheduled later during the early North American session. The data might influence the USD price dynamics and produce some short-term trading opportunities.
Technical levels to watch
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