NZD/USD looking for topside push after spike into 0.5890
- The NZD/USD is seeing a recovery fueled mostly by broad-market US Dollar selling.
- NZ economic data has broadly missed the mark, hampering upside potential.
- Markets set to keep an eye out for Friday's US NFP.
The NZD/USD is churning near 0.5870, looking for further upside as the US Dollar (USD) recedes across the broader market, giving the Kiwi (NZD) a leg up the charts heading into the Thursday market session.
Forex Today: Fed holds, Dollar slides and stocks rise
New Zealand economic data has missed the mark lately, with NZ Employment figures and the NZ Unemployment rate both coming in below expectations earlier in the week.
Jerome Powell explains decision to leave interest rate unchanged
The US Federal Reserve (Fed) held pat on interest rates on Wednesday, and Fed Chairman Jerome Powell struck a notably less hawkish tone than many market participants were expecting, sending the Greenback lower and giving equities and riskier assets a leg up for the mid-week trading session.
NZD/USD Technical Outlook
Despite Wednesday's bullish bounce, the Kiwi remains deeply in red territory, trading into the 21-day Exponential Moving Average (EMA) after dipping to twelve month lows at 0.5772.
The 50-day Simple Moving Average (SMA) is capping off bullish potential from just north of 0.5900, and the target to beat for bulls will be reclaiming the 0.6000 handle without getting rejected from the last swing high near 0.6050.
NZD/USD Daily Chart
NZD/USD Technical Levels