NZD/USD prints fresh highs, remains below 0.6300
- NZD/USD flat on Monday, holds onto Friday’s gains.
- US stocks slide, stay away from recent lows.
- US data: unexpected contraction in the Empire Manufacturing.
The NZD/USD climbed to 0.6295 during the American session reaching the highest level since Thursday. The pair is rising as dollar’s strength takes a pause and amid lower US yields.
The Dow Jones is falling 0.27% but still holds to most of Friday’s rally. Volatility eased and commodity prices are rising at the beginning of the week. The US Dollar Index is flat for the day hovering around 104.50. The context offers support to the NZD/USD, however is not enough for pushing it above 0.6300.
Economic data released on Monday showed an unexpected decline in the US Empire Manufacturing Index. The numbers weigh modestly on the US Dollar. The key economic report of the week, the April’s Retail Sales is due on Tuesday.
Downtrend 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 0.6260/0.6225 range.
The bearish trend remains intact. To open the doors to further losses the dollar needs to break under 0.6200. On the upside, a confirmed recovery above 0.6300 should point to more gains.
Technical levels