Arnaud Masset
Swissquote Bank Ltd
Expect further downside in NZD/USD, as the interest rate differential continues to move negatively, making NZD shorts costly. Speculators are still net long Kiwi (non-commercial position: net long 40% of total open interest) and will unwind position as the currency nosedives. The next key support can be found at 0.7188 (low from 29 March), then 0.7154 (low from 21 March). On the upside, resistance lies around 0.74 (high from mid-April). All in all, a return towards 0.70, or even below, seems reasonable.
Stay on top of the markets with Swissquote’s News & Analysis
The New Zealand dollar saw heavy selling on Friday amidst weak inflation data. The Kiwi fell 0.53% against the greenback and hit $0.7230. Headline inflation eased to 1.1% annually in Q1, down from 1.6% in the previous quarter. After increasing 0.5% in the Q4 last year, tradable inflation contracted 0.40% annually, while non-tradable inflation eased to 2.3%. The relative strength of the Kiwi during that period explains most of the reduction in price pressures. However, the sector factor model, used by the Reserve Bank of New Zealand, shows a brighter picture, holding steady at 1.5%.
This report has been prepared by Swissquote Bank Ltd and is solely been published for informational purposes and is not to be construed as a solicitation or an offer to buy or sell any currency or any other financial instrument. Views expressed in this report may be subject to change without prior notice and may differ or be contrary to opinions expressed by Swissquote Bank Ltd personnel at any given time. Swissquote Bank Ltd is under no obligation to update or keep current the information herein, the report should not be regarded by recipients as a substitute for the exercise of their own judgment.
Recommended Content
Editors’ Picks
EUR/USD extends gains above 1.0700, focus on key US data
EUR/USD meets fresh demand and rises toward 1.0750 in the European session on Thursday. Renewed US Dollar weakness offsets the risk-off market environment, supporting the pair ahead of the key US GDP and PCE inflation data.
USD/JPY keeps pushing higher, eyes 156.00 ahead of US GDP data
USD/JPY keeps breaking into its highest chart territory since June of 1990 early Thursday, recapturing 155.50 for the first time in 34 years as the Japanese Yen remains vulnerable, despite looming intervention risks. The focus shifts to Thursday's US GDP report and the BoJ decision on Friday.
Gold closes below key $2,318 support, US GDP holds the key
Gold price is breathing a sigh of relief early Thursday after testing offers near $2,315 once again. Broad risk-aversion seems to be helping Gold find a floor, as traders refrain from placing any fresh directional bets on the bright metal ahead of the preliminary reading of the US first-quarter GDP due later on Thursday.
Injective price weakness persists despite over 5.9 million INJ tokens burned
Injective price is trading with a bearish bias, stuck in the lower section of the market range. The bearish outlook abounds despite the network's deflationary efforts to pump the price.
Meta takes a guidance slide amidst the battle between yields and earnings
Meta's disappointing outlook cast doubt on whether the market's enthusiasm for artificial intelligence. Investors now brace for significant macroeconomic challenges ahead, particularly with the release of first-quarter GDP data.