NZD/USD: can the bird's advance continue and target 2017 highs?

Ross J Burland FXStreet

NZD/USD is currently trading at 0.7283 with a high of 0.7285 and low of 0.7276.

NZD/USD is consolidating in a quiet start to the week. There is a lot of focus is on the bird at the moment considering its recent performance and relentless advance. Against the US dollar, the bird is just shy of a five cent advance from the depths of the 0.68 handle with mid-May's strong uptrend to recent highs. At the same time, the bird has been in a strong uptrend vs the Aussie and the cross is now down to 1.0371 the low.

The week ahead: United States - Nomura

However, the bird may be in for a correction on overbought territory and fundamentally, the economic developments since the RBNZ’s previous policy statement in May have been broadly neutral from a policy perspective. Analysts at Westpac suggested that the RBNZ is unlikely to find itself under pressure to raise rates by this time next year. Therefor, the weeks ahead will determine the underlying trend and all eyes will be on the US economy in respect to the recent conflicting realities in the US economy vs the Fed's objectives, determining the course of the dollar for the rest of the year.

NZD/USD levels

NZD/USD managed a score through the 0.7280 mark and is anchored just below the psychological 0.73 handle having made a high last week at 0.7318 and strong resistance there. 0.7374 was the high for 2017. To the downside, 0.7250/80 area guards 0.7200 guards 0.7145 and a break back below 0.7080/90 are key near-term downside areas. On the wide, the 0.7375 YTD highs are a key target to the upside and to the downside, a break below 0.7080/00 opens 0.6970.

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 treads water above 1.1850 amid thin trading

EUR/USD stays defensive but holds 1.1850 amid quiet markets in the European hours on Monday. The US Dollar is struggling for direction due to thin liquidity conditions as US markets are closed in observance of Presidents' Day.

GBP/USD flat lines as traders await key UK and US macro data

GBP/USD kicks off a new week on a subdued note and oscillates in a narrow range near 1.365 in Monday's European trading. The mixed fundamental backdrop warrants some caution for aggressive traders as the market focus now shifts to this week's important releases from the UK and the US.

Gold sticks to intraday losses; lacks follow-through

Gold remains depressed through the early European session on Monday, though it has managed to rebound from the daily trough and currently trades around the $5,000 psychological mark. Moreover, a combination of supporting factors warrants some caution for aggressive bearish traders, and before positioning for deeper losses.

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.

Monero Price Forecast: XMR risks a drop below $300 under mounting bearish pressure

Monero (XMR) starts the week under pressure, recording a 4% decline at press time on Monday after a 7% drop the previous day, putting the $300 support zone in focus.