- NZD/USD recovery from week lows at 0.5990 extends to 0.6145.
- The New Zealand dollar appreciates buoyed by risk appetite and a softer US dollar.
- The kiwi is set to a 1.5% weekly gain, approaching two-months high at 0.6175.
The New Zealand dollar’s rebound from Thursday’s lows at 0.5990 has extended beyond 0.6100 on Friday, to reach session highs 30 pips shy of April’s top at 0.6175. The Kiwi has been supported by broad-based US dollar weakness amid a moderate recovery of risk appetite on hopes that the measures to ease Coronavirus restrictions will help to spark a global recovery.
Kiwi recovery accelerates as risk appetite returns
The NZD/USD appreciates for the consecutive day on Friday retracing previous losses, on track to close the week with a 1.5% gain. The kiwi has been favoured by market speculation about negative interest rates in the US next year and a somewhat softer dollar, following April US employment data.
The US dollar has dropped moderately across the board after the US Labor Department released that US economy destroyed 20.5 million jobs in April. The final reading has beaten market expectations of a 22 million decline, yet, it boosts the jobless rate to 14% which is its highest level since World War II.
USD/NZD: Bulls aiming to 0.6175 high
The kiwi remains moderately positive on the near-term. The daily and 4-hour charts show the pair supported above an upward trending line from March 25 lows at 0.5785, now at 0.6015.
On the upside, immediate resistance remains at the mentioned 0.6175 (April 30 high). Above here, the pair might gain bullish traction to attack the 100-day SMA, now at 0.6275 and March 11 high at 0.6340.
On the downside, below trendline support at 0.6015, next support levels might be 0.5910/20 (April 16 and 22 lows) and April 3 low at 0.5845.