NZD/USD extends sideways grind below 0.6450 ahead of US retail sales data


After rising toward the 0.6500 handle on the back of the Reserve Bank of New Zealand's hawkish policy outlook on Wednesday, the NZD/USD pair lost its traction and registered small losses on Thursday. With the market action turning subdued ahead of key data releases from the US, the pair is moving sideways below near 0.6440.

The only data from New Zealand on Friday revealed that the Food Price Index in January rose 2.1% following Decembers decline of 0.2% but was largely ignored by the market participants. In the meantime, China’s National Health Commission (NHC) announced that the total number of coronavirus infections rose to 63,851 as of Friday morning to make it hard for the China-proxy NZD to find demand.

Eyes on US data

On the other hand, the US Dollar Index, which advanced to its highest level since early October at 99.16, seems to be consolidating its gains ahead of key data releases from the US and helping the pair limit its downside for the time being. As of writing, the index was down 0.04% on the day at 99.06.

Retail Sales, Industrial Production and the University of Michigan's Consumer Confidence Index will be featured in the US economic docket on Friday. Industrial Production is expected to decline by 0.2% in January and a better-than-expected reading could provide a boost to the greenback.

Technical levels to watch for


Today last price0.6435
Today Daily Change-0.0007
Today Daily Change %-0.11
Today daily open0.6442


Daily SMA200.6508
Daily SMA500.6582
Daily SMA1000.6478
Daily SMA2000.6501


Previous Daily High0.647
Previous Daily Low0.6428
Previous Weekly High0.6504
Previous Weekly Low0.6397
Previous Monthly High0.6741
Previous Monthly Low0.6453
Daily Fibonacci 38.2%0.6444
Daily Fibonacci 61.8%0.6454
Daily Pivot Point S10.6423
Daily Pivot Point S20.6404
Daily Pivot Point S30.638
Daily Pivot Point R10.6465
Daily Pivot Point R20.6489
Daily Pivot Point R30.6508