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  • NZD/USD takes the bids near three-month high around 0.6450.
  • Latest comments from US President Donald Trump offered additional boost to the market’s risk-tone.
  • New Zealand ANZ Commodity Price Index in immediate focus, ECB, US Jobless Claims will be the key afterward.

NZD/USD extends pullback from the Asian session opening of 0.6418 to 0.6430 during the early hours of Thursday. The kiwi pair has recently been cheering broad risk-on sentiment, as well as weak US dollar, while probing the March 2020 high. The pair’s latest catalyst could be comments from US President Donald Trump.

In his interview with Newsmax’s Sean Spicer, US President Trump reiterated calls to not use harsh military power to punish the rioters. The Republican leader also said not to think of sanctions on China’s President XI Jinping for the Hong Kong issue. Further, the optimist additionally said the economy will be even better with a little time.

Following the news, markets got an additional push to extend the previous day’s optimism. It’s worth mentioning that the US President’s step back from using the military to stop protests and hopes of the economy were the main catalysts of the market’s upbeat performance on Wednesday. Also supporting the riskier assets were calls of further stimulus from the global central bankers and weak USD.

That said, the risk-on mood helped the US 10-year Treasury yields to jump above 0.75% while also favoring Wall Street to print notable gains by the end of Wednesday’s trading. Recently, the S&P 500 Futures is gaining upside momentum with mild profits of around 3,120.

Looking forward, New Zealand’s ANZ Commodity Price Index, expected -1.6% versus -1.1% prior, might offer immediate direction to the kiwi pair ahead of the busy European/US session. Although the ECB’s monetary policy meeting, followed by Governor Christine Lagarde’s press conference, will be crucial to watch, US Jobless Claims will also be important for the pair traders to follow. Should the ECB manage to keep its bearish bias while announcing expected additional stimulus, the market’s risk-on mood will gain further strength, which in turn could propel the NZD/USD pair further towards the north.

Technical analysis

Unless breaking below 200-day SMA level near 0.6315, NZD/USD is gearing up for February high close to 0.6500. Though, March top surrounding 0.6450 seems to offer immediate resistance to the pair.