NZD/USD recovers above 0.6600 boosted by a weak US dollar

By FXStreet FXStreet (Córdoba) – NZD/USD erased losses and rose back above 0.6600 after the US dollar plummeted across the board following wage data form the second quarter. The pair rose from 0.6535 and peaked at 0.6673, reaching the highest level since Wednesday.

Currently it trades around 0.6630/35, up 25 pips from yesterday’s closing price and posting modest weekly gains for the second week in a row.

NZD/USD reverses but long term…

During the Asian session, after the ANZ business confidence index showed the worst numbers in 6 years, the NZD/USD broke below 0.6600. The pair continued to slide and bottomed at 0.6533 on European hours, hitting the lowest level since July 20. The weakness of the pair ended with the employment cost report of the US, that showed the lowest wage increase since 1982, increasing expectation that he Fed would rise rates later than previously expected.

Despite changing the intraday trend, the long term perspective still favor the US dollar and NZD/USD could remain under pressure, unable to move considerably away from 0.6500.

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Source:: FX Street