- NZD/USD: unable to get through the 10 4-hr SMA.
- US dollar weak, but a rebound could see Kiwi down to 0.6820 initially.
Forex today: Wall Street's momentum slows, risk sentiment subdued, DXY below 94 handle
NZD/USD has been capped at 0.6880 and in the vicinity of the descending 10 SMA on the 4-hour sticks, unable to benefit any further from the greenback's slide below the 94 handle with a heavy yen cross. Currently, NZD/USD is trading at 0.6875, down -0.04% on the day, having posted a daily high at 0.6882 and low at 0.6873. The overnight low was located at 0.6844.
WTI plunges below $55 amid massive buildup in US crude oil stock
NZD/USD biased lower on Central Bank divergence
NZD/USD has been recovering on the 0.68 handle after the late July high at 0.7557 and Sep high of 0.7341 and the latest slide in Oct from 0.72 the figure. The divergence between the RBNZ (slightly more hawkish on its 2019 outlook) and the Fed keep the pair anchored on recovery attempts in the 0.69 handle, most recently capped by the 21-D SMA at 0.6943. Fed fund futures yields continued to price the chance of a Fed December rate hike at almost 100%.
NZD/USD 1 day:
"Daily momentum has swung back to negative, technically targeting the Oct low of 0.6820 which probably requires either a sharp rebound in the USD or further deterioration in risk sentiment," argued analysts at Westpac.
NZD/USD 1-3 month:
"If the RBNZ remains firmly on hold, as we expect, and the US dollar rises on a delivery of a Fed interest rate rise in December, then NZD/USD should fall to 0.67 by year end", the analysts added.
NZD/USD levels
NZD/USD broke the 0.69 handle this week and dropped further below the 100 SMA on the 4-hour sticks. A follow-through exposes the 26th Oct low of 0.6818. To the upside, 0.6980 guards 0.7055, 9th Oct low.
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. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD edges lower toward 1.0700 post-US PCE
EUR/USD stays under modest bearish pressure but manages to hold above 1.0700 in the American session on Friday. The US Dollar (USD) gathers strength against its rivals after the stronger-than-forecast PCE inflation data, not allowing the pair to gain traction.
GBP/USD retreats to 1.2500 on renewed USD strength
GBP/USD lost its traction and turned negative on the day near 1.2500. Following the stronger-than-expected PCE inflation readings from the US, the USD stays resilient and makes it difficult for the pair to gather recovery momentum.
Gold struggles to hold above $2,350 following US inflation
Gold turned south and declined toward $2,340, erasing a large portion of its daily gains, as the USD benefited from PCE inflation data. The benchmark 10-year US yield, however, stays in negative territory and helps XAU/USD limit its losses.
Bitcoin Weekly Forecast: BTC’s next breakout could propel it to $80,000 Premium
Bitcoin’s recent price consolidation could be nearing its end as technical indicators and on-chain metrics suggest a potential upward breakout. However, this move would not be straightforward and could punish impatient investors.
Week ahead – Hawkish risk as Fed and NFP on tap, Eurozone data eyed too
Fed meets on Wednesday as US inflation stays elevated. Will Friday’s jobs report bring relief or more angst for the markets? Eurozone flash GDP and CPI numbers in focus for the Euro.