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  • NZD/USD staged a goodish bounce from sub-0.60 levels, or near two-week lows.
  • Upbeat market mood, a subdued USD demand remained supportive of the uptick.

The NZD/USD pair caught some fresh bids during the early European session and spiked to fresh daily tops, around the 0.6065 region in the last hour.

The NZD/USD showed some resilience below the key 0.60 psychological mark and staged a goodish intraday bounce from two-week lows, support marked by the lower end of a multi-week-old ascending trend-channel.

Against the backdrop of the latest optimism over the re-opening of economies in some parts of the world, the global risk sentiment got an additional boost from Thursday’s better-than-expected Chinese trade balance data.

The risk-on mood was evident from a positive mood around the equity markets and weighed on the US dollar’s safe-haven status. This, in turn, was seen as a key factor that benefitted riskier currencies, like the kiwi.

Meanwhile, the intraday positive momentum faced some resistance near 200-hour SMA, which should now act as a key pivotal point for short-term traders amid worsening US-China relations over the origin of the coronavirus.

Hence, it will be prudent to wait for some strong follow-through buying, possibly beyond weekly swing highs resistance near the 0.6075-80 region, before traders start positioning for any further near-term appreciating move.

Moving ahead, Thursday’s release of the US Initial Weekly Jobless Claims might influence the USD price dynamics and produce some meaningful trading opportunities around the NZD/USD pair later during the early North-American session.

Technical levels to watch