NZD/USD bulls remain in control, but for how long?

Ross J Burland FXStreet

Currently, NZD/USD is trading at 0.7284, up 0.30% on the day, having posted a daily high at 0.7297 and low at 0.7237.

US Dollar finds resistance around 101.00

NZD/USD bulls remain in control, while New Zealand offers some form of stability in respect to geopolitical tensions around the world at the moment and the dollar remains at the mercy of daily sentiment in respect to the Fed and Trump.

"While we can envisage scenarios where USD and AUD strength will prove to be challenging for the Kiwi, it is difficult to overlook political stability, fiscal flexibility, solid domestic fundamentals, and elevated interest rates," argued analysts at ANZ, adding, "The end result is one that will likely see the NZD hold up fairly well even in the face of a USD comeback."

However, on a medium term outlook, The Fed’s assertive tightening projections plus US fiscal expansion should maintain upside pressure on US interest rates and the US dollar, put forward by analysts at Westpac, adding, "Against that, the NZ economy is strong and dairy prices have risen, but these forces are subservient to the US dollar’s trend."

NZD/USD levels

1. R3 0.7288
2. R2 0.7284
3. R1 0.7278
PP 0.7273
1. S1 0.7268
2. S2 0.7263
3. S3 0.7257

Author

Ross J Burland

FXStreet

Ross J Burland, born in England, UK, is a sportsman at heart. He played Rugby and Judo for his county, Kent and the South East of England Rugby team.

EUR/USD keeps the rangebound trade near 1.1850

EUR/USD is still under pressure, drifting back towards the 1.1850 area as Monday’s session draws to a close. The modest decline in spot comes as the US Dollar picks up a bit of support, while thin liquidity and muted volatility, thanks to the US market holiday, are exaggerating price swings and keeping trading conditions choppy.

GBP/USD flirts with daily lows near 1.3630

GBP/USD has quickly given back Friday’s solid gains, turning lower at the start of the week and drifting back towards the 1.3630 area. The focus now shifts squarely to Tuesday’s UK labour market report, which is likely to keep the quid firmly in the spotlight and could set the tone for Cable’s next move.

Gold battle around $5,000 continues

Gold is giving back part of Friday’s sharp rebound, deflating below the key $5,000 mark per troy ounce as the new week gets underway. Modest gains in the US Dollar are keeping the metal in check, while thin trading conditions, due to the Presidents Day holiday in the US, are adding to the choppy and hesitant tone across markets.

AI Crypto Update: Bittensor eyes breakout as AI tokens falter

The artificial intelligence (AI) cryptocurrency segment is witnessing heightened volatility, with top tokens such as Near Protocol (NEAR) struggling to gain traction amid the persistent decline in January and February.

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.