“¢ Signs of stability in the global financial markets extend some support.
“¢ A modest USD pullback prompted some intraday short-covering move.
“¢ Traders now eye second-tier US economic releases for fresh impetus.
The NZD/USD pair reversed an early dip to one-week lows and rallied around 40-pips, hitting fresh session tops during the early European session.
With investors still digesting the recent escalation in the US-China trade tensions, some signs of stability in global financial markets extended some support/helped ease the bearish pressure surrounding perceived riskier currencies – like the Kiwi.
This coupled with a modest US Dollar pullback, led by persistent weakness in the US Treasury bond yields might have acted as another factor prompting some aggressive intraday short-covering move and behind the latest leg of an upsurge.
It, however, remains to be seen if the uptick is backed by any genuine buying or is still seen as a selling opportunity at higher levels as the market focus remains on any fresh trade-related headlines, which remains a sole driver of the broader market risk sentiment.
Later during the early North-American session, the US economic docket – featuring the release of housing market data, the usual initial weekly jobless claims and Philly Fed Manufacturing Index, will now be looked upon for some short-term trading impetus.
Technical levels to watch
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