NZD/USD prints fresh highs, remains below 0.6300

The NZD/USD pair has climbed to 0.6295 during the American session touching its highest level since Thursday. The pair is surging as the USD dollar’s strength takes a pause and amid lower US Treasury yields.

The Dow Jones Index has fallen by 0.27% but still holds to most of Friday’s rally. Market’s volatility eased and commodity prices are rebounding at the beginning of the week. The US Dollar Index is flat for the day hovering around 104.50. The overall context offers support to the NZD/USD, however is not enough for pushing it above 0.6300.

Economic data released on Monday has shown an unexpected decline in the US Empire Manufacturing Index. The numbers weigh modestly on the US Dollar. The key economic report of the week, the April’s Retail Sales will be released on Tuesday.

Last week, the NZD/USD bottomed at 0.6205, the lowest level in almost two years and then started a recovery that weakened near 0.6300. In the short-term, the pair is seen consolidating in a range between 0.6260 and 0.6295; and below 0.6260/0.6225 range.

The bearish trend is still intact. To open the doors to further losses the dollar needs to break under 0.6200. On the upside, a confirmed recovery above 0.6300 should point to more gains.