NZD/USD rebounds from over one-week lows, inches back closer to 0.6600 mark
- A combination of factors assisted NZD/USD to reverse an early slide to seven-day lows.
- The upbeat market mood undermined the safe-haven USD and remained supportive.
The NZD/USD pair has managed to recover around 45 pips from seven-day lows and was last seen trading near daily tops, near the 0.6585-90 region.
The pair stalled this week's retracement slide from the 0.6655-60 supply zone and attracted some buying near the 0.6545 region on Thursday. The uptick was supported by a combination of factors – the prevalent upbeat market mood and a mildly softer tone surrounding the US dollar.
Hopes for more US fiscal stimulus measures revived after the US President Donald Trump said that he was ready for gradual spending measures, including support for individuals, small businesses and airlines. This changed the market sentiment and benefitted the perceived riskier kiwi.
Apart from the risk-on environment, the safe-haven greenback was further undermined by Wednesday's FOMC meeting minutes. The document revealed that policymakers remain worried over the economic recovery in the absence of additional fiscal stimulus by the government.
This was evident from a modest pullback in the US Treasury bond yields, which exerted some additional pressure on the USD. The NZD/USD pair was last seen trading just below the 0.6600 mark as market participants now look forward to the US Initial Weekly Jobless Claims for fresh impetus.
Technical levels to watch