NZD/USD jumps to fresh daily highs, eyes 0.7300

A weak US dollar boosted the NZD/USD that rose from daily lows at 0.7230 and jumped to 0.7294, hitting the highest level since last Friday.

Moving away from lows

Greenback was rising modestly in the market and initially after the first round of economic data in the US (jobless claims) it rose further. Then, after manufacturing data the US dollar reversed sharply and pushed NZD/USD to the upside.

It broke above 0.7270 and climbed toward 0.7300. It peaked at 0.7294 and it was trading at 0.7285, up 0.50% for the day, moving away from the key short-term support located above 0.7200. Despite the recent recovery still trades below the level it had a week ago but with NFP coming tomorrow the week is far from over.

The recent slide of the US dollar was triggered by weak US data. The ISM manufacturing fell to 49.4, back into contraction territory and posting the lowest level since January. The Markit manufacturing PMI remained practically unchanged at 52.1.