NZD/USD,H4

The NZ government is continuing with plans to ease lockdown restrictions as the number of Covid-19 continues to fall. The New Zealand Dollar has rebounded sharply and has more room to move higher, if risk appetite improves. NZDUSD is up 0.86% on the month and is trading above the 0.7100 level as of the time of writing. If economic conditions improve and the RBNZ can move forward with a rate hike, the New Zealand Dollar should respond with further strength.

The ANZ Business Outlook for September was released early due to Covid, and the reading showed an improvement from the August release. Business Confidence rose to -6.8, up from -14.2 previously. The survey also found that inflationary pressures have eased, but cost pressures remain high. Meanwhile, on Wednesday (15/09), Q2 GDP data will be released. With the combined effects of the pandemic and the implementation of the intensive lockdown, the economy is likely to suffer and struggle to repeat the strong 1.6% gain in Q1. However, the consensus is around 1.3%, which still shows signs that the recovery is continuing at a good pace.

NZDUSD

The pair continued consolidating for the 7th day after being stuck at 0.7169, which was the previous neckline range, and also formed a lower high of 0.7155 at the end of last week. Yesterday (13/09) the price barely moved and only traded in a tight space of around 25 pips validated by the RSI spreading between the 50 levels. Last week’s top price cap, in the absence of a strong break to the upside, would be the 3rd peak lower and send the price to retrace the support levels from the 0.6804 advance.

Immediate minor support is at 0.7075. A break of this level will target the 0.7000 round number (around the 50% FR area of the 0.6804-0.7169 low). As long as the 0.7075 minor support holds, the bias will return to the upside for 0.7155 and 0.7169. A break of these two resistance levels would confirm the decline from 0.7463 while strengthening would accelerate the bull’s dominance to the north to 0.7315.

NZDUSD

Disclaimer: Nothing in this communication contains, or should be considered as containing, an investment advice or an investment recommendation or a solicitation for the purpose of purchase or sale of any financial instrument.

Feed news

How do emotions affect trade?
Follow up our daily analysts guidance

Subscribe Today!    

Latest Forex Analysis


Latest Forex Analysis

Editors’ Picks

EUR/USD remains pressured after US data misses estimates

EUR/USD is trading closer to 1.1750, paring its recovery from earlier in the day as the safe-haven dollar is bid. US Consumer Sentiment missed estimates with 72 points in September. The financial woes of China's Evergrande are weighing on sentiment.

EUR/USD News

GBP/USD trades under 1.38 amid on UK data, dollar strength

GBP/USD is on the back foot, trading under 1.38 after UK Retail Sales figures disappointed with -0.9% in August, worse than expected. Brexit uncertainty and dollar demand weighed on the pair earlier. 

GBP/USD News

XAU/USD surrenders intraday gains, drops closer to $1,750 level

Gold struggled to preserve its intraday gains and dropped to the lower end of the daily trading range during the early North American session. 

Gold News

Experts say Ripple will win SEC lawsuit, which might propel XRP to new all-time highs

The latest development in the ongoing SEC vs. Ripple lawsuit is that documents are classified as privileged and blocked for public viewing. Though institutional investors are yet to take big bets on the altcoin in 2021, retail investors are actively trading in XRP.

Read more

US Michigan Consumer Sentiment Preview: Markets will have to look hard for positive signs

Consumer outlook expected to rebound to 72.2 in September. August’s 70.2 was the lowest since December 2011. Inflation and Delta variant wearing on US optimism. Markets face negative dollar risk from fading consumer optimism.

Read more

Majors

Cryptocurrencies

Signatures