- NZD/USD pressured but stabilises, longing for a bullish correction.
- The focus will be on US politics, the greenback and Kiwi CPI this week.
NZD/USD is currently trading at 0.7112 between a range of 0.7096 and 0.7139, lower by some 0.18% on the day as the greenback holds its own.
It was a quiet day owing to the Martin Luther King Jr Day holiday in the US and risk appetite was mixed in Europe. The Euro Stoxx 50 rose 0.1% and the FTSE 100 was down 0.2%.
Meanwhile, the greenback strengthened for a third consecutive day on Monday, reaching a four week high, as risk aversion swept through currency markets, knocking the antipodeans lower.
The US dollar retained its firmer tone ahead of former Fed Chair, Janet Yellen’s, Senate confirmation hearing as US Treasury Secretary tomorrow and President-elect, Joe Biden’s, inauguration on Wednesday.
Major currencies remain within established ranges, watching carefully the new administration's stance on the currency.
However, looking into the first 100 days of Biden’s administration the focus will be on rolling out the vaccine and providing economic stimulus.
Both are consistent with a weaker USD. Therefore, NZD weakness may only be temporary. However, the Kiwi dollar appears in a more fragile state compared to its peers AUD and CAD.
It dropped 1% this last week in a chopper risk environment and the possible unwinding of some speculative long positions that (according to CFTC data) were at +26% of open interest on 5 January, the highest in G10.
Negative rates have been fully priced out at this juncture, but the Consumer Price Index for the fourth quarter could offer some grim reading for which investors will want to reconsider bets on the Reserve Bank of New Zealand's stance.
|Today last price||0.7112|
|Today Daily Change||-0.0025|
|Today Daily Change %||-0.35|
|Today daily open||0.7137|
|Previous Daily High||0.7234|
|Previous Daily Low||0.7118|
|Previous Weekly High||0.7241|
|Previous Weekly Low||0.7118|
|Previous Monthly High||0.7241|
|Previous Monthly Low||0.7002|
|Daily Fibonacci 38.2%||0.7162|
|Daily Fibonacci 61.8%||0.719|
|Daily Pivot Point S1||0.7092|
|Daily Pivot Point S2||0.7047|
|Daily Pivot Point S3||0.6976|
|Daily Pivot Point R1||0.7208|
|Daily Pivot Point R2||0.7279|
|Daily Pivot Point R3||0.7324|
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.