• Strong US Initial Jobless Claims and upbeat S&P Global PMIs reinforce USD strength.
• Geopolitical headlines around Middle East negotiations keep safe-haven demand elevated.
• NZD/USD softens as higher US yields and cautious sentiment weigh on the Kiwi.

The NZD/USD pair trades with a negative bias near the 0.5860 area on Friday, April 24, as the US Dollar (USD) remains supported despite a slight loss of momentum in the broader index. The Greenback continues to benefit from a combination of resilient economic data and ongoing geopolitical uncertainty.

Weekly Initial Jobless Claims rose to 215K from 212K, signaling that the US labor market remains solid. At the same time, S&P Global PMIs surprised to the upside, with Manufacturing at 52.1 and Services at 53.7, highlighting sustained expansion in business activity. This data mix pushed US yields higher and reinforced demand for the USD.

Meanwhile, geopolitical developments remain a key driver of sentiment. Reports denying Speaker of the Parliament of Iran Mohammad-Bagher Ghalibaf's resignation from a key negotiating role added to the uncertainty surrounding Middle East diplomacy.

Short-term technical analysis:

On the four-hour chart, NZD/USD trades at 0.5858 with a mildly bearish near-term bias. Momentum has softened, with the Relative Strength Index (RSI) hovering around 37, suggesting selling pressure dominates but remains shy of outright oversold territory.

On the topside, initial resistance emerges at 0.5871, followed by the prior intraday cap at 0.5879, with further hurdles at 0.5907 and 0.5930 before a stronger barrier at 0.5965. On the downside, immediate support is seen just below the market at 0.5847, ahead of 0.5840 and then the reinforcing technical floor from the 100-period SMA at roughly 0.5833; a clear break beneath this cluster would likely open the way to deeper losses.

(The technical analysis of this story was written with the help of an AI tool.)