NZD/USD bounces off weekly lows, up little around 0.6835

Haresh Menghani FXStreet

• Softer US bond yields provide some immediate respite.
• Chinese trade data/commodity prices supportive.
• Keenly watched US jobs data holds the key.

The NZD/USD pair gained some positive traction this Friday and recovered part of previous session's sharp slide to weekly lows.

Today's better-than-expected Chinese trade balance data helped offset a follow-through pickup in the US Dollar demand. This coupled with a modest retracement in the US Treasury bond yields helped ease selling pressure around higher-yielding currencies - like the Kiwi.

Meanwhile, in absence of any fresh domestic data, an uptick in commodity prices extended some additional support to the resource-linked currencies and remained supportive of the pair's modest rebound.

It would now be interesting to see if the pair is able to build on the recovery move or extends its consolidative price action within a 7-day old trading range amid expectations of another solid headline NFP print, due for release later during the NA session.

Technical levels to watch

Immediate resistance is pegged near the 0.6855-60 region, above which the pair could be headed back towards the 0.6890-0.6900 supply zone. A clear break through the mentioned hurdle now seems to lift the pair towards testing 50-day SMA near mid-0.6900s.

On the flip side, 0.6820 level might continue to protect the immediate downside, which if broken could accelerate the fall even below the 0.6800 handle towards Nov. monthly lows support near the 0.6780 level.

Author

Haresh Menghani

FXStreet

Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.

EUR/USD stays well offered below 1.1800

The selling pressure on EUR/USD is picking up pace, with the pair slipping decisively below the key 1.1800 level and sliding to fresh two week lows as Wednesday’s session draws to a close. The move lower comes as the US Dollar finds renewed strength after the latest round of US data and the release of the FOMC Minutes. Next of note on the docket will be the US weekly Initial Jobless Claims.

GBP/USD reaches multi-day lows near 1.3500

GBP/USD reverses its initial upside momentum and is now adding to previous declines, approaching the 1.3500 region on Wednesday. Cable’s downtick comes on the back of decent gains in the Greenback and easing UK inflation figures, which seem to have reinforced the case for a BoE rate cut in March.

Gold battle to regain $5,000 continues

Gold is back on the front foot on Wednesday, shaking off part of the early week softness and challenging two-day highs near the $5,000 mark per troy ounce. The move comes ahead of the FOMC Minutes and is unfolding despite an intense rebound in the US Dollar.

Australia unemployment rate set to edge up within overall strong labor market

The Australian monthly employment report is scheduled for release on Thursday at 00:30 GMT, and market participants anticipate a modest increase in jobs in January. The Australian Bureau of Statistics is expected to announce that the country added 20K new jobs in the month, while the Unemployment Rate is forecast at 4.2%, up from the 4.1% posted in December.

Mixed UK inflation data no gamechanger for the Bank of England

Food inflation plunged in January, but service sector price pressure is proving stickier. We continue to expect Bank of England rate cuts in March and June. The latest UK inflation read is a mixed bag for the Bank of England, but we doubt it drastically changes the odds of a March rate cut.

Sui extends sideways action ahead of Grayscale’s GSUI ETF launch

Sui is extending its downtrend for the second consecutive day, trading at 0.95 at the time of writing on Wednesday. The Layer-1 token is down over 16% in February and approximately 34% from the start of the year, aligning with the overall bearish sentiment across the crypto market.