NZD/USD attempts gains on upbeat NZ consumer confidence

Omkar Godbole FXStreet Contributor

An uptick in the ANZ - NZ consumer confidence number and slightly dovish comments by Fed’s Evans helped stall the sell-off in the NZD/USD pair at 0.7220 levels.

The spot is now trading marginally positive on the day around 0.7232. The momentum has shifted in the favor of bears if we take into account the bearish crossover on the daily MACD.

On a larger scheme of things, the rally from the low of 0.6818 looks mature, given the exhaustion around 0.73 levels and Monday’s bearish inverted hammer candle.

Focus on GlobalDairyTrade (GDT) Auction

Futures suggest a flat to weak result of the GDT auction today. Two weeks ago, the GDT index increased for the sixth consecutive rise. On annualised terms, the index is up 57%. An uptick in the GDT index today could revive the bullish move in the NZD.

On Thursday, the Reserve Bank to hold the OCR at 1.75 percent and to maintain a neutral outlook for interest rates.

NZD/USD Technical Levels

A break above 0.7247 (Feb 23 high) would expose 0.7319 (June 14 high) and 0.7350 (Jan 31 high). On the downside, a break below 0.72 (zero figure + 23.6% Fib R of May low - June high) would open up downside towards 0.7171 (June 12 low), 0.7147 (June 2 high) and 0.7127 (38.2% Fib R). The RSI has turned lower from the overbought region, while the MACD bearish divergence has been followed by a bearish crossover confirmation. Caution is advised as indicators suggest a pullback could be in the offing.

	TREND INDEX	OB/OS INDEX	VOLATILY INDEX
15M	Bearish	Neutral	Shrinking
1H	Bearish	Neutral	Low
4H	Bearish	Neutral	Low
1D	Slightly Bullish	Neutral	Low
1W	Bullish	Neutral	Low
Updated Jun 20, 02:15 GMT

Author

Omkar Godbole

FXStreet Contributor

Omkar Godbole, editor and analyst, joined FXStreet after four years as a research analyst at several Indian brokerage companies.

EUR/USD recedes to daily lows near 1.1850

EUR/USD keeps its bearish momentum well in place, slipping back to the area of 1.1850 to hit daily lows on Monday. The pair’s continuation of the leg lower comes amid decent gains in the US Dollar in a context of scarce volatility and thin trade conditions due to the inactivity in the US markets.

GBP/USD resumes the downtrend, back to the low-1.3600s

GBP/USD rapidly leaves behind Friday’s decent advance, refocusing on the downside and retreating to the 1.3630 region at the beginning of the week. In the meantime, the British Pound is expected to remain under the microscope ahead of the release of the key UK labour market report on Tuesday.

Gold looks inconclusive around $5,000

Gold partially fades Friday’s strong recovery, orbiting around the key $5,000 region per troy ounce in a context of humble gains in the Greenback on Monday. Additing to the vacillating mood, trade conditions remain thin amid the observance of the Presidents Day holiday in the US.

Bitcoin consolidates as on-chain data show mixed signals

Bitcoin price has consolidated between $65,700 and $72,000 over the past nine days, with no clear directional bias. US-listed spot ETFs recorded a $359.91 million weekly outflow, marking the fourth consecutive week of withdrawals.

The week ahead: Key inflation readings and why the AI trade could be overdone

It is likely to be a quiet start to the week, with US markets closed on Monday for Presidents Day. European markets are higher across the board and gold is clinging to the $5,000 level after the tamer than expected CPI report in the US reduced haven flows to precious metals.

XRP steadies in narrow range as fund inflows, futures interest rise

Ripple is trading in a narrow range between $1.45 (immediate support) and $1.50 (resistance) at the time of writing on Monday. The remittance token extended its recovery last week, peaking at $1.67 on Sunday from the weekly open at $1.43.