NZD/USD steady around 0.7000 on a quiet session

• US dollar mixed on Monday after falling sharply on Friday.
• NZD/USD holds bullish bias, positive momentum fades.

The NZD/USD pair is moving sideways around 0.7000 so far on Monday, holding onto most of Friday’s gains. Price action remains limited with majors in small ranges.

The DXY is flat for the day, hovering around 92.70. After some weakness seen during the Asian session, the US dollar stabilized and recovered ground even amid lower US yields and risk appetite. Market participants ignored US Data and continue to analyze Powell’s comments last week. The key report during the week will be the US official employment report on Friday.

From a technical perspective, NZD/USD will show a bullish bias while above the 0.6975 area. A break above 0.7020 should clear the way to more gains targeting 0.7045. On the flip side, below 0.6970 (20-day simple moving average), the kiwi would weaken. The next support stands at 0.6930.

The AUD/NZD holds a negative bias and is back near the recent low, around 1.0400. If it breaks lower, an acceleration seems likely, that could boost the kiwi across the board.

Technical levels