NZD/USD regained positive traction on the last day of the week amid a further USD pullback. Hopes for a ceasefire undermined the safe-haven USD and benefitted the perceived riskier kiwi. The NZD/USD pair held on to its modest intraday gains through the early European session and was last seen trading near around the 0.6710-0.6715 region, up 0.10% for the day.
The pair built on the overnight late recovery from the weekly low, around 0.6630 area, and gained some positive traction on the last day of the week, though the uptick lacked bullish conviction.
It, however, remains to be seen if the NZD/USD pair is able to capitalize on the move or meets with a fresh supply at higher levels amid the risk of a further escalation in geopolitical tensions. Hence, it will be prudent to wait for strong follow-through buying before confirming that this week's sharp pullback from over one-month high - levels just above the 0.6800 mark - has run its course. Market participants now look forward to the US economic docket, highlighting the release of the Fed's preferred inflation gauge - the core PCE Price Index - and Durable Goods Orders.