NZD/USD depreciates amid risk aversion due to geopolitical tensions, trades below 0.5900

NZD/USD extends its losing streak as traders adopt cautious stance amid anticipation of Israel's response to Iran's assault.
US Retail Sales (MoM) rose by 0.7% in March, against the expected 0.3% and 0.9% prior.
US Dollar extends gains on amplified expectations of the Fed maintaining higher policy rates for an extended period.

Akhtar Faruqui FXStreet

NZD/USD depreciates to near 0.5880 during the Asian trading session on Tuesday, as investors turn toward the US Dollar (USD) seeking refuge amid escalated geopolitical tensions in the Middle East. Traders await Israel’s response to Iran’s airstrike over the weekend. Additionally, traders are awaiting New Zealand's Consumer Price Index (CPI) data for the first quarter of 2024, scheduled for release on Wednesday. Market expectations suggest a slight uptick to 0.6% quarter-on-quarter, compared to the previous period's 0.5%.

The Chinese and Iranian foreign ministers recently engaged in a phone conversation, during which the Iranian foreign minister conveyed Iran's willingness to exercise restraint and expressed no desire to escalate the current situation further, as per Chinese state media. Additionally, China vehemently condemns and firmly opposes the recent attack on the Iranian embassy in Syria, deeming it a serious breach of international law and categorizing it as 'unacceptable'.

The New Zealand Dollar (NZD) fails to take any response from the mixed Chinese data, considering the two nations are close trading partners. China’s Gross Domestic Product (GDP) rose by 1.6% QoQ in the first quarter of 2024, against the previous quarter’s increase of 1.0%. GDP year-over-year rose by 5.3%, exceeding the expected 5.0% and 5.2% prior. Meanwhile, China’s Industrial Production (YoY) increased by 4.5% in March, against the market expectations of 5.4% and 7.0% prior.

On the other side, the US Dollar (USD) gained strength as Retail Sales surpassed expectations, denting hopes for potential monetary policy easing by the Federal Reserve (Fed). March's Retail Sales (MoM) surged by 0.7%, outpacing forecasts of 0.3%. February's figure was also revised upward from 0.6% to 0.9%. The Retail Sales Control Group climbed by 1.1%, marking a substantial increase from the previous 0.3%. Investors are now eyeing upcoming US housing data due on Tuesday, as well as Fed Chair Jerome Powell's speech at the Washington Forum.

NZD/USD

Overview
Today last price	0.5875
Today Daily Change	-0.0029
Today Daily Change %	-0.49
Today daily open	0.5904

Trends
Daily SMA20	0.6002
Daily SMA50	0.6079
Daily SMA100	0.6134
Daily SMA200	0.6063

Levels
Previous Daily High	0.5954
Previous Daily Low	0.5898
Previous Weekly High	0.6079
Previous Weekly Low	0.5933
Previous Monthly High	0.6218
Previous Monthly Low	0.5956
Daily Fibonacci 38.2%	0.5919
Daily Fibonacci 61.8%	0.5933
Daily Pivot Point S1	0.5884
Daily Pivot Point S2	0.5863
Daily Pivot Point S3	0.5828
Daily Pivot Point R1	0.594
Daily Pivot Point R2	0.5975
Daily Pivot Point R3	0.5996

Author

Akhtar Faruqui

FXStreet

Akhtar Faruqui is a Forex Analyst based in New Delhi, India. With a keen eye for market trends and a passion for dissecting complex financial dynamics, he is dedicated to delivering accurate and insightful Forex news and analysis.

AUD/USD holds rebound near 0.6900 on US-China trade optimism

AUD/USD holds the rebound near 0.6900 in the Asian session on Monday. Mixed China's inflation data for October fails to provide any inspiration to the Chinese proxy, the Australian Dollar, but China's extension of the suspension of 24% tariffs on US goods and reduced US-Iran tensions help the Aussie pair cling to recovery gains.

USD/JPY retreat in sync with USD, appraches 158.00

USD/JPY is back in the red at the start of the week on Monday, eyeing the broad US Dollar retreat amid easing US-Iran tensions. Traders also resorting to profit-taking following the blockbuster US Nonfarm Payrolls data-led rally. US CPI report is next in focus.

Gold rises amid US-Iran peace deal hopes, softer US Dollar

Gold price recovers some lost ground above $4,020 during the early European trading hours on Monday. The prospects of diplomacy in the US-Iran conflict and weaker US Dollar (USD) boost the precious metal.

Bitcoin faces pressure as weekly ETF outflows hit $1.28 billion

Bitcoin remains under pressure on Monday, trading below the 50-week Simple Moving Average at $75,222 after extending its losing streak to five consecutive weeks. Bearish sentiment strengthened as $1.28 billion in net outflows from spot BTC Exchange-Traded Funds last week marked the largest weekly withdrawal since late June.

Economics week ahead

This week, attention turns to Tuesday’s CPI report, with no year-over-year readings available because of last October’s shutdown-related data gap. We expect headline and core inflation to clock 0.28% and 0.21% month-over-month, respectively. Softer core inflation would offer some relief after September’s upside surprise but should still leave our call for a December rate hike intact.

US Dollar breaks below 101.50 as Democrats sweep Congress

The US Dollar (USD) comes under heavy selling pressure on Wednesday, with the US Dollar Index (DXY) falling around 0.5% to trade near 101.35 after sliding below the 101.50 level. The Greenback retreats to its lowest level in four weeks as investors reassess the political and economic outlook following the Democratic Party's sweeping victory in the United States (US) midterm elections.