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NZD/USD knocks into 0.68 but remains trapped by the key barrier

2018-7-6 10:50:37Market Analysis
NZD/USD knocks into 0.68 but remains trapped by the key barrier

The NZD/USD is trying to grind its way higher in early Friday action, peaking at a new high for the week just over the 0.6800 level, though the pair is now returning to near-term consolidation near 0.6780.


The US Dollar is slightly back across the broader FX markets, and the Kiwi is trading tightly with the key 0.6800 barrier after recovering from 2018's low of 0.6686.


The Kiwi has had a sedate week on the calendar, but the upcoming US session will see another round of the US Non-Farm Payrolls, and as FXStreet's own Valeria Bednarik noted, "market players are expecting the US economy to have added 195K new jobs in June, the unemployment rate is seen at record lows of 3.8%, while as usual, wages are barely expected to show signs of life, up monthly basis 0.3% and by 2.8% YoY."


The week has been driven by the market's anticipation of Friday's inbound US tariffs on $34 billion of Chinese goods, with China promising a quick retaliation, and the US pre-emptively threatening further tariffs following any tariffs from China. With the trade war set to spiral further down, trade fears may overshadow the US NFP for Friday.


NZD/USD levels to watch


The Kiwi's current stance is leaning to the bullish side, but constraints remain nearby, and as FXStreet's own Ross Burland noted, "0.6680 is the key support while 0.6850 is the first key upside target on a continuation of the reversal through the 200-hr SMA at 0.6785 where the price is holding above. Only a break above 0.6850 would alleviate the downside pressures and eyes remains towards 0.6675. On the wide, while below the key 200-month moving average resistance at 0.7007 longer term technicals remain bearish."