NZD/USD rebounds toward 0.6200 as USD loses momentum

• Dollar drops into the London fix, even as US yields remain at weekly highs.
• DXY reverses turns negative, erasing a 0.60% daily gain.
• NZD/USD: key support above 0.6150 remains in place.

The NZD/USD again rebounded from near 0.6150 and climbed to 0.6200, trimming daily losses. A decline of the US dollar across the board boosted the pair.

The greenback weakened around the London fix, even as US yields printed fresh daily highs. In Wall Street, stocks turned decisively positive and commodities erased losses. The DXY dropped from above 109.00 to 108.40.  

Economic data from the US showed on Wednesday a mixed Durable Goods Order report with the headline missing expectations but with positive detail. A different report revealed Existing Home Sales dropped 1% in July to the lowest in two years. On Thursday, a new estimate of Q2 GDP, the weekly Jobless Claims and the Kansas Fed Manufacturing index are due.

During the Asian session Retail Sales data is due in New Zealand. Later on Thursday, the market focus will turn to the Jackson Hole symposium. Jerome Powell will speak on Friday.

Crucial support at 0.6150

The bias in NZD/USD continues to favor the downside. The crucial support is around 0.6150, which capped the upside during the last four trading days. A break lower would clear the way to more losses targeting 0.6125 initially and then 0.6095.

On the upside, the immediate resistance may be seen at 0.6205, followed by 0.6240.

Technical levels