NZD/USD climbs to fresh 2-month highs, targets 0.67

RBNZ keeps the policy rate unchanged at 1.5% as expected.
Latest headlines revived hopes of the U.S.-China bringing trade conflict to an end.
US Dollar Index clings to small daily gains despite uninspiring data.

Eren Sengezer FXStreet

Following a quick drop to 0.6615 with the knee-jerk reaction to the Reserve Bank of New Zealand's (RBNZ) policy statement, the NZD/USD pair didn't have a difficult time turning positive on the day and is now looking to extend its winning streak into 10th straight day. As of writing, the pair was up 0.67% on the day at 0.6682.

As expected, the RBNZ announced that it left its policy rate unchanged at 1.5%. Assessing the policy statement, "Today's statement was in line with our expectations heading into the rate decision with the RBNZ shifting from a 'balanced' outlook to an easing bias - 'a lower OCR may be needed',” said Prashant Newnaha, senior Asia-Pacific rates strategist at TD Securities.

Revived hopes of the U.S. and China trade war coming to an end today helped antipodeans such as kiwi and the AUD gather strength. Earlier in the day U.S. Treasury Secretary Mnuchin claimed that the trade deal was 90% completed. Complementing this comment, President Donald Trump stated that it was possible for them to reach a trade agreement with China when he meets Chinese President Xi at the G20 summit this weekend in Osaka, Japan.

On the other hand, today's data from the U.S. showed that durable goods orders contracted by 1.3% on a monthly basis in May to fall short of the market expectation for a decline of 0.1%. Other data showed that the trade deficit in May rose to $74.55 billion. Despite the disappointing data, however, the US Dollar Index clings to small gains supported by recovering Treasury bond yields and caps the pair's gains for the time being.

Technical levels to watch for

NZD/USD

Overview
Today last price	0.6681
Today Daily Change	0.0042
Today Daily Change %	0.63
Today daily open	0.6639

Trends
Daily SMA20	0.6574
Daily SMA50	0.6589
Daily SMA100	0.67
Daily SMA200	0.671

Levels
Previous Daily High	0.6662
Previous Daily Low	0.6616
Previous Weekly High	0.6606
Previous Weekly Low	0.649
Previous Monthly High	0.6684
Previous Monthly Low	0.6481
Daily Fibonacci 38.2%	0.6644
Daily Fibonacci 61.8%	0.6633
Daily Pivot Point S1	0.6616
Daily Pivot Point S2	0.6592
Daily Pivot Point S3	0.6569
Daily Pivot Point R1	0.6662
Daily Pivot Point R2	0.6685
Daily Pivot Point R3	0.6709

Author

Eren Sengezer

FXStreet

As an economist at heart, Eren Sengezer specializes in the assessment of the short-term and long-term impacts of macroeconomic data, central bank policies and political developments on financial assets.

EUR/USD onsolidates around mid-1.1800s as traders keenly await FOMC Minutes

The EUR/USD pair struggles to capitalize on the previous day's goodish rebound from the 1.1800 neighborhood, or a one-and-a-half-week low, and consolidates in a narrow band during the Asian session on Wednesday. Spot prices currently trade just below mid-1.1800s, nearly unchanged for the day.

GBP/USD bounces off lows, retargets 1.3550

After bottoming out just below the 1.3500 yardstick, GBP/USD now gathers some fresh bids and advances to the 1.3530-1.3540 band in the latter part of Tuesday’s session. Cable’s recovery comes as the Greenback surrenders part of its advance, although it keeps the bullish bias well in place for the day.

Gold bounces back toward $4,900, looks to FOMC Minutes

Gold is attempting a bounce from the $4,850 level, having touched a one-week low on Tuesday. Signs of progress in US–Iran talks dented demand for the traditional safe-haven bullion, weighing on Gold in early trades. However, rising bets for more Fed rate cuts keep the US Dollar bulls on the defensive and act as a tailwind for the non-yielding yellow metal. Traders now seem reluctant ahead of the FOMC Minutes, which would offer cues about the Fed's rate-cut path and provide some meaningful impetus.

DeFi could lift crypto market from current bear phase: Bitwise

Bitwise Chief Investment Officer Matt Hougan hinted that the decentralized finance sector could lead the crypto market out of the current bear phase, citing Aave Labs’ latest community proposal as a potential signal of good things to come.

UK jobs market weakens, bolstering rate cut hopes

In the UK, the latest jobs report made for difficult reading. Nonetheless, this represents yet another reminder for the Bank of England that they need to act swiftly given the collapse in inflation expected over the coming months.

Ripple slides to $1.45 as downside risks surge

Ripple edges lower at the time of writing on Tuesday, from the daily open of $1.48, as headwinds persist across the crypto market. A short-term support is emerging at $1.45, but a buildup of bearish positions could further weaken the derivatives market and prolong the correction.