NZD/USD: 0.5865/0.5985 range is likely to contain the price movements for now – UOB Group

FXStreet Insights Team FXStreet

A narrower 0.5865/0.5985 range is likely enough to contain the price movements for now, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.

Any decline is unlikely to break clearly below 0.5885

24-HOUR VIEW: "In the early Asian session yesterday, we indicated that 'the current price movements are likely part of a range trading phase between 0.5910 and 0.5960.' However, instead of trading in a range, NZD fell to 0.5895, closing at 0.5898 (-0.70%). The increase in downward momentum is not enough to indicate a sustained decline. Instead, it is more likely to lead to a lower range of 0.5885/0.5925. To put it another way, any decline is unlikely to break clearly below 0.5885."

1-3 WEEKS VIEW: "We have expected NZD to trade in a range since the middle of last week. Yesterday (22 May, spot at 0.5935), we highlighted that 'While the price action over the past couple of days provides no fresh clues, a narrower 0.5865/0.5985 range is likely enough to contain the price movements for now.' There is no change in our view. Looking ahead, should NZD break clearly below 0.5865, it could trigger a decline."

Author

FXStreet Insights Team

FXStreet

The FXStreet Insights Team is a group of journalists that handpicks selected market observations published by renowned experts. The content includes notes by commercial as well as additional insights by internal and external analysts.

GBP/USD remains weaker as UK-US yields narrow

GBP/USD extends its losses for the second consecutive day, trading around 1.3450 during the Asian hours. The pair depreciates as the British Pound softens even as United Kingdom political risk fades.

EUR/USD weakens amid Middle East tensions

EUR/USD extends its losses for the second consecutive day, trading around 1.1520 during the Asian hours. The currency pair faces downward pressure as the US Dollar gains strength, propelled by renewed safe-haven demand among global investors.

How Wall Street rigs the game [Video]

In this week’s Live from the Vault, Andrew Maguire is joined by Peter Antico and Sean Stone to discuss the Paradigm of Money - an in-depth expose of financial market corruption, from naked shorting to the two-tier system that protects Wall Street.

US Senate delays Clarity Act vote – Cardano and LayerZero lead gains

Bitcoin price holds steady above $64,000 with the 50-day Exponential Moving Average at $64,637 capping gains. The US Senate has delayed the floor vote for the Crypto Clarity Act after the summer recess, starting Monday. Cardano and LayerZero hold gains from the previous day's rebound, outperforming top altcoins over the last 24 hours.

Markets question Fed's inflation resolve after July FOMC meeting

Federal Reserve Chairman Kevin Warsh continues to project a tough stance on inflation, repeatedly promising to restore price stability and keep inflation anchored at the central bank's longstanding 2% target. But according to Mike Maharrey in this week's Money Metals Midweek Memo, markets are beginning to judge the Fed by its actions rather than its rhetoric—and so far, they aren't convinced.

9-3: Is the Federal Reserve’s vote tally Warsh's new forward guidance?

The rate did not move. Neither did the statement, and that’s the more interesting fact. Set the July 29 Federal Open Market Committee (FOMC) statement beside the one issued on June 17, and the two documents are identical apart from a single verb and a paragraph at the bottom naming three dissenters.