NZD/USD gains traction to three-month highs above 0.6200 on Fed rate cut bets

NZD/USD attracts some buyers near 0.6205 on Thursday.
The US ISM Services PMI came in stronger than expected, rising to 53.8 in May from 49.4 in April.
The encouraging Chinese Caixin Services PMI data on Wednesday supports the China-proxy NZD.

Lallalit Srijandorn FXStreet

The NZD/USD pair extends the rally to three-month highs around 0.6205 on Thursday during the early Asian trading hours. Investors start to price in two interest rate cuts by the Federal Reserve (Fed) this year, which drags the Greenback lower against the Kiwi. The US weekly Initial Jobless Claims is due on Thursday ahead of the highly-anticipated US Nonfarm Payrolls (NFP) data on Friday.

The US Dollar (USD) recovery proved short-lived despite the stronger-than-expected US ISM Services Purchasing Managers Index (PMI) data for May. The Services PMI improved to 53.8 from 49.4 in April, better than the forecast of 50.8.

The recent weaker US GDP and more signs of a weakening labour market prompted rising Federal Reserve (Fed) rate-cut bets, which might weigh on the USD in the near term. A majority of forecasters in a Reuters poll showed that the Fed is likely to cut its key interest rate in September and once more this year. Traders are currently pricing in about a 70% possibility of a Fed rate cut in September, according to CME FedWatch.

On the Kiwi front, the encouraging Chinese data provides some support to the New Zealand Dollar (NZD), as China is New Zealand's largest trading partner. On Wednesday, the latest data released by Caixin showed that China's Services PMI rose to 54.0 in May from 52.5 in April, beating market expectations of 52.6 by a wide margin in the reported period.

NZD/USD

Overview
Today last price	0.6206
Today Daily Change	0.0012
Today Daily Change %	0.19
Today daily open	0.6194

Trends
Daily SMA20	0.6111
Daily SMA50	0.6022
Daily SMA100	0.6066
Daily SMA200	0.6052

Levels
Previous Daily High	0.621
Previous Daily Low	0.617
Previous Weekly High	0.6171
Previous Weekly Low	0.6088
Previous Monthly High	0.6171
Previous Monthly Low	0.5875
Daily Fibonacci 38.2%	0.6195
Daily Fibonacci 61.8%	0.6185
Daily Pivot Point S1	0.6173
Daily Pivot Point S2	0.6151
Daily Pivot Point S3	0.6133
Daily Pivot Point R1	0.6213
Daily Pivot Point R2	0.6231
Daily Pivot Point R3	0.6253

Author

Lallalit Srijandorn

FXStreet

Lallalit Srijandorn is a Parisian at heart. She has lived in France since 2019 and now becomes a digital entrepreneur based in Paris and Bangkok.

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