- NZD/USD sideways on Monday, maintains Friday’s gains.
- US stocks fall, stay off recent lows.
- US data: Unexpected contraction in the Empire Manufacturing index.
The NZD/USD rose to 0.6295 during the American session reaching the highest level since Thursday. The pair is rising as dollar strength pauses and amid lower US yields.
The Dow is down 0.27% but still holding most of Friday’s rally. Volatility has subsided and commodity prices are rising at the start of the week. The US dollar index remains sideways during the day, hovering around 104.50. Context offers support for NZD/USD, however not enough to push it above 0.6300.
Economic data released on Monday showed an unexpected drop in the US Empire Manufacturing Index. The numbers weigh modestly on the US dollar. The week’s key economic report, April retail sales, is due out on Tuesday.
Bearish trend intact, consolidating in the very short term
Last week, the NZD/USD bottomed at 0.6205, the lowest level in almost two years, and then started a recovery that weakened near 0.6300. In the short term, the pair is seen consolidating in a range between 0.6260 and 0.6295; and below the range 0.6260/0.6225.
The downtrend remains intact. To open the doors to more losses, the dollar needs to break below 0.6200. On the upside, a confirmed recovery above 0.6300 should point to more gains.
Technical levels
Source: Fx Street
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