NZD/USD climbs further beyond 0.6500 mark, highest since late January
- NZD/USD continued scaling higher for the fifth consecutive session on Friday.
- The risk-on mood undermined the safe-haven USD and remained supportive.
- Investors now eye the US monthly jobs report for a fresh directional impetus.
The NZD/USD pair extended it's steady appreciating move and climbed further beyond the key 0.6500 psychological mark, hitting over four-month tops in the last hour.
The pair to built on this week's bullish break through the very important 200-day SMA and gained some follow-through traction for the fifth consecutive session. The US dollar bearish pressure remained unabated on the last trading day of the week and was seen as a key factor driving the NZD/USD pair higher.
Growing optimism over a sharp V-shaped global economic recovery from the coronavirus pandemic remained supportive of the prevalent risk-on environment. This, in turn, weighed heavily on the greenback's relative safe-haven status and continued benefitting perceived riskier antipodean currencies, like the kiwi.
Bulls seemed rather unaffected by concerns about a further escalation in the US-China tensions. Relations between the world's two largest economies soured further after the US suspended passenger flights by Chinese airline in response to the dragon nation's move to bar American carriers from re-entering China.
It will now be interesting to see if bulls maintain their dominant position or opt to take some profits off the table. Extremely overbought conditions on short-term charts might keep a lid on any additional gains ahead of Friday's release of the closely watched US monthly jobs report, popularly known as NFP.
The US economy is expected to have lost 8 million jobs in May and the unemployment rate is anticipated to have jumped to 19.8% on the back of coronavirus-induced lockdowns. The data will influence the near-term USD price dynamics and help investors determine the NZD/USD pair's next leg of a directional move.
Technical levels to watch