Nzdusd Strong On Improved Risk

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Nzdusd Strong On Improved Risk

Nzd/Usd Strong Near 0.5950 On Improved Risk Appetite

An improved risk appetite has allowed the NZD/USD pair to continue its positive movement during Friday's trading session.

The NZD is famous for being sensitive to risk sentiment & that's exactly what we saw on Friday. With an improvement in the risk appetite, the NZD gained ground against the USD. However, some of these gains were later trimmed amid a rebound in the greenback.

Dxy Hovers At 105.70

look at the DXY shows it is near the 105.70 handle, but it appears that any gains in the index remain limited due to the negative tone seen in the bond yields. So in a sense, the weakness seen in the USD is stemming from the bond yields.

day earlier, data from the USA showed mixed readings which ended up putting pressure on the USD. For starters, the Q1 GDP was disappointing (a reading of 1.6%) while the PCE index showed an alarming rise in inflation.

Overall, the recent data shows that various parts of the US economy are struggling with slowdowns and potential challenges.

After the release of the Q1 GDP and the core PCE, many experts now believe that it can strongly impact the Fed's upcoming decision on rate cuts.

On the New Zealand side, ANZ-Roy Morgan Consumer Confidence showed a reading of 82.1 in April against the previous value of 86.4. When we look at the historical readings, that's the lowest level only seen during 2008.

Although consumer confidence has declined, the overall reading is still pretty elevated. Meanwhile, New Zealand's accounts show a trade surplus during March as exports touched a 10-month high.

Up ahead is the NFP report from the USA, along with various important data releases from the USA and the NZ. However, the bigger picture is that the NZD/USD is still trading under 0.6115 & 0.6048, the levels where 100 SMA and 200 SMA are present.

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