NZD/USD capped by 0.5970 for Thursday as US Dollar drives the market

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The NZD/USD has ticked about five basis points higher through Thursday's market trading, driven by a receding Greenback (USD). Ongoing economic concer

ns and spiking US Treasury yields has seen the USD bolstered across the broader market this week, but Thursday sees a step back in US Dollar action, giving the Kiwi a brief reprieve and recovering some recent losses.

China's ongoing property debacle continues to sap confidence in the Asia sector currencies. Evergrande, the world's single most indebted property developer, had its chairman Hui Ka Yan placed under police watch this week as funding and liquidity concerns grip China's real estate sector.

A beat on the Federal Reserve's favorite inflation indicator could see the USD spike further on the charts, as higher-than-expected inflation will be increasingly likely to push the Fed into holding higher interest rates for even longer than anticipated.is currently capped under the 0.5970 handle after reaching an intraday high of 0.5975.

On daily candlesticks, the NZD/USD is pinned to the 34-day Exponential Moving Average, and the pair is pricing in a floor from the 0.5900 major handle. Long-term moving averages are rolling over bearish, and the 200-day SMA is settling to the low side of 0.6200. Bidders will first have to crack the 34-day EMA and the 0.600 major psychological level before moving higher, while a resurgence of downside pressure will see the pair set to take a new run at ten-month lows below 0.5845.

 

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