NZD/USD climbs to 4-week high

Kenny Fisher MarketPulse

NZD/USD continues to rally and has gained ground in Friday trading. In the European session, the pair is trading at 0.6699, up 0.35% on the day.

New Zealand dollar rallies above 67 level

The New Zealand dollar is poised to record its best week since August. NZD/USD has gained 1.4% so far this week, and the pair is in green territory for a third straight day. The kiwi has gained more ground as New Zealand inflation rebounded in impressive fashion in the third quarter. CPI gained 0.7%, after a decline of 0.5% in Q2. The reading was shy of the forecast of 0.9%, but investors were impressed with the bounce back in inflation. The positive sentiment lifted the New Zealand dollar above the round number of 0.6700 in Friday’s Asian session, the first time we’ve seen that since September 21st.

Will RBNZ introduce negative rates?

New Zealand’s central bank has dropped hints that it could implement negative rates, a scenario which is being heard from other major central banks in this period of ultra-low interest rate levels. Negative interest rates would likely cause the New Zealand currency to depreciate, as investors would want to shift their assets into currencies that offer more attractive interest rates. Recent New Zealand economic data has been mixed, making it difficult to project when the RBNZ might slash interest rates below zero. However, the robust CPI release is an important sign that the economic recovery is gaining steam, which makes a rate cut less likely. The Official Cash Rate has been pegged at 0.25% since March, and a negative rate scenario is unlikely before April 2021, at the earliest.

NZD/USD Technical

NZD/USD broke above 0.6699 in the Asian session. Close by is the next resistance line is at 0.6723.
There is support at 0.6642, followed by support at 0.6609.
NZD/USD broke above the 20-day MA line on Wednesday and the pair continues to move higher.

Author

Kenny Fisher

MarketPulse

A highly experienced financial market analyst with a focus on fundamental analysis, Kenneth Fisher’s daily commentary covers a broad range of markets including forex, equities and commodities.

EUR/USD hits two-day highs near 1.1820

EUR/USD picks up pace and reaches two-day tops around 1.1820 at the end of the week. The pair’s move higher comes on the back of renewed weakness in the US Dollar amid growing talk that the Fed could deliver an interest rate cut as early as March. On the docket, the flash US Consumer Sentiment improves to 57.3 in February.

GBP/USD reclaims 1.3600 and above

GBP/USD reverses two straight days of losses, surpassing the key 1.3600 yardstick on Friday. Cable’s rebound comes as the Greenback slips away from two-week highs in response to some profit-taking mood and speculation of Fed rate cuts. In addition, hawkish comments from the BoE’s Pill are also collaborating with the quid’s improvement.

Gold climbs further, focus is back to 45,000

Gold regains upside traction and surpasses the $4,900 mark per troy ounce at the end of the week, shifting its attention to the critical $5,000 region. The move reflects a shift in risk sentiment, driving flows back towards traditional safe haven assets and supporting the yellow metal.

Crypto Today: Bitcoin, Ethereum, XRP rebound amid risk-off, $2.6 billion liquidation wave

Bitcoin edges up above $65,000 at the time of writing on Friday, as dust from the recent macro-triggered sell-off settles. The leading altcoin, Ethereum, hovers above $1,900, but resistance at $2,000 caps the upside. Meanwhile, Ripple has recorded the largest intraday jump among the three assets, up over 10% to $1.35.

Three scenarios for Japanese Yen ahead of snap election

The latest polls point to a dominant win for the ruling bloc at the upcoming Japanese snap election. The larger Sanae Takaichi’s mandate, the more investors fear faster implementation of tax cuts and spending plans.

XRP rally extends as modest ETF inflows support recovery

Ripple is accelerating its recovery, trading above $1.36 at the time of writing on Friday, as investors adjust their positions following a turbulent week in the broader crypto market. The remittance token is up over 21% from its intraday low of $1.12.