NZD/USD can test up as high as 0.70 – ANZ

FXStreet Team FXStreet

A combination of better domestic fundamentals, strong virus management and a weaker USD have helped propel the NZD to 2020 highs. Despite the strong performance, there are some potential headwinds over the next month, therefore, economists at ANZ Bank expect the kiwi to trade in the range of 0.65 though spikes toward 0.70 are not ruled out.

Key quotes

“August is the low point in the season for New Zealand export returns. Dairy volumes are down as very little milk is produced in June/July and meat exports are affected by low inventory levels. This makes August a seasonally poor month for the currency.”

“A commitment to suppressing yields and expanding QE will diminish some of the NZD’s appeal, particularly against the AUD. We expect the RBNZ will increase the Large-Scale Asset Purchase Programme limit to $90 billion in August and signal willingness to do even more through other tools.”

“These influences are likely to act as only as a moderating force against the broader, liquidity-driven portfolio flows which are supporting risky assets like the NZD. This leaves our forecast trajectory for the NZD mostly flat, with the expectation NZD/USD will range-trade around our fair value estimate of 0.65, but can test up as high as 0.70.”

Author

FXStreet Team

FXStreet

EUR/USD flirts with daily highs, retargets 1.1900

EUR/USD regains upside traction, returning to the 1.1880 zone and refocusing its attention to the key 1.1900 barrier. The pair’s slight gains comes against the backdrop of a humble decline in the US Dollar as investors continue to assess the latest US CPI readings and the potential Fed’s rate path.

GBP/USD remains well bid around 1.3650

GBP/USD maintains its upside momentum in place, hovering around daily highs near 1.3650 and setting aside part of the recent three-day drop. Cable’s improved sentiment comes on the back of the Greenback’s irresolute price action, while recent hawkish comments from the BoE’s Pill also collaborate with the uptick.

Gold clings to gains just above $5,000/oz

Gold is reclaiming part of the ground lost on Wednesday’s marked decline, as bargain-hunters keep piling up and lifting prices past the key $5,000 per troy ounce. The precious metal’s move higher is also underpinned by the slight pullback in the US Dollar and declining US Treasury yields across the curve.

Crypto Today: Bitcoin, Ethereum, XRP in choppy price action, weighed down by falling institutional interest

Bitcoin's upside remains largely constrained amid weak technicals and declining institutional interest. Ethereum trades sideways above $1,900 support with the upside capped below $2,000 amid ETF outflows.

Week ahead – Data blitz, Fed Minutes and RBNZ decision in the spotlight

US GDP and PCE inflation are main highlights, plus the Fed minutes. UK and Japan have busy calendars too with focus on CPI. Flash PMIs for February will also be doing the rounds. RBNZ meets, is unlikely to follow RBA’s hawkish path.

Ripple Price Forecast: XRP potential bottom could be in sight

Ripple edges up above the intraday low of $1.35 at the time of writing on Friday amid mixed price actions across the crypto market. The remittance token failed to hold support at $1.40 the previous day, reflecting risk-off sentiment amid a decline in retail and institutional sentiment.