NZD/USD: diminished odds for extra losses – UOB

Pablo Piovano FXStreet

In light of the recent price action, a probable test of the 0.63 area in NZD/USD appears to have lost momentum for the time being, according to FX Strategists at UOB Group.

Key Quotes

24-hour view: “No change in view from yesterday, see reproduced update below. That said, after yesterday’s strong rebound, the prospect for a move to

0.6300 has diminished further”.

Next 1-3 weeks: “NZD rebounded to 0.6411 last Friday (12 Aug) before ending on a firm note at 0.6395 (+0.51%). However, events over the weekend sent it plunging to a low of 0.6342 this morning. The price action was not surprising as we indicated last Friday (12 Aug, spot at 0.6365) that our long-held level of 0.6350 is “within sight”. While further NZD weakness is not ruled, the current decline is over-extended and the next support at 0.6300 could be out of reach. That said, NZD is not out of the woods yet as it has to reclaim 0.6430 (‘key resistance’ was at 0.6455 last Friday) in order to indicate that a short-term bottom is in place”.

Author

Pablo Piovano

FXStreet

Born and bred in Argentina, Pablo has been carrying on with his passion for FX markets and trading since his first college years.

EUR/USD flat lines around 1.1900; looks to US NFP report for fresh directional impetus

The EUR/USD pair is seen oscillating in a narrow trading band around the 1.1900 mark during the Asian session on Wednesday as traders opt to wait for the release of US monthly employment details before placing fresh directional bets.

GBP/USD recovers losses despite rising UK political risks, BoE rate cut bets

Pound Sterling advances against the US Dollar after registering modest losses in the previous session, trading around 1.3650 during the Asian hours on Wednesday. The pair could extend losses as the Pound Sterling faces pressure from rising political risks in the UK and growing expectations of near-term Bank of England rate cuts.

Gold awaits US Nonfarm Payrolls data for a sustained upside

Gold remains capped below $5,100 early Wednesday, gathering pace for the US labor data. The US Dollar licks its wounds amid persistent Japanese Yen strength and potential downside risks to the US jobs report. Gold holds above $5,000 amid bullish daily RSI, with eyes on 61.8% Fibo resistance at $5,141.

Bitcoin, Ethereum and Ripple show no sign of recovery

Bitcoin, Ethereum, and Ripple show signs of cautious stabilization on Wednesday after failing to close above their key resistance levels earlier this week. BTC trades below $69,000, while ETH and XRP also encountered rejection near major resistance levels. With no immediate bullish catalyst, the top three cryptocurrencies continue to show no clear signs of a sustained recovery.

Dollar drops and stocks rally: The week of reckoning for US economic data

Following a sizeable move lower in US technology Stocks last week, we have witnessed a meaningful recovery unfold. The USD Index is in a concerning position; the monthly price continues to hold the south channel support.

XRP holds $1.40 amid ETF inflows and stable derivatives market

Ripple trades under pressure, with immediate support at $1.40 holding at the time of writing on Tuesday. A recovery attempt from last week’s sell-off to $1.12 stalled at $1.54 on Friday, leading to limited price action between the current support and the resistance.