NZD/USD hits fresh multi-week tops, around 0.6440 region
- NZD/USD pair manages to regain some positive traction on Friday.
- Subdued USD demand, improving risk sentiment remains supportive.
- Some strong follow-through buying needed to confirm bullish bias.
The NZD/USD pair built on its intraday positive move through the early European session on Friday and climbed to four-week tops, around the 0.6435-40 region in the last hour.
Following the previous session's two-way price moves amid holiday-thinned liquidity conditions, the pair managed to regain some positive traction on the last trading day of the week and was being supported by a subdued US dollar demand.
As investors digested the latest escalation in tensions between the world's two largest economies, a mildly weaker tone surrounding the US Treasury bond yields undermined the USD and turned out to be one of the key factors driving the pair higher.
This coupled with a slight improvement in the global risk sentiment, as depicted by a modest recovery in equity markets, provided an additional boost to perceived riskier currencies – like the kiwi – and remained supportive of the pair's positive move.
It, however, remains to be seen if bulls are able to capitalize on the momentum or the pair meets with some fresh supply at higher levels amid renewed uncertainty over the US-China "phase one" deal and absent relevant market-moving US economic releases.
Technical levels to watch