NZD/USD: Does not have enough momentum to reach 0.5770 – UOB Group

FXStreet Insights Team FXStreet

The New Zealand Dollar (NZD) could drop further; at this time, it does not appear to have enough momentum to reach 0.5770 for now. In the longer run, downward momentum is beginning to build; NZD is expected to weaken to 0.5770, UOB Group’s FX analysts Quek Ser Leang and Lee Sue Ann note.

NZD is expected to weaken to 0.5770 in the longer run

24-HOUR VIEW: “Yesterday, when NZD was at 0.5855, we held the view that ‘provided that 0.5825 is not breached, NZD could edge higher to 0.5880.’ Our expectation did not materialize as NZD traded in a 0.5837/0.5869 range. NZD closed at 0.5845, but fell sharply in early Asian trade today. The sharp drop has scope to extend, but at this time, NZD does not appear to have enough momentum to reach the major support at 0.5770. Note that there is another support level at 0.5795. Minor resistance is at 0.5835; any rebound is likely to remain below 0.5855.”

1-3 WEEKS VIEW: “Our most recent narrative was from last Friday (22 Nov, spot at 0.5860), wherein ‘While the underlying tone has softened, any decline is likely part of a lower trading range of 0.5815/0.5905.’ We stated, ‘NZD is unlikely to break clearly below 0.5815.’ After dropping sharply early today, downward momentum is beginning to build. We expect NZD to weaken to 0.5770. We will maintain the same view provided that 0.5875 is not breached.”

Author

FXStreet Insights Team

FXStreet

The FXStreet Insights Team is a group of journalists that handpicks selected market observations published by renowned experts. The content includes notes by commercial as well as additional insights by internal and external analysts.

GBP/USD hits multi-week tops around 1.3560

GBP/USD gathers fresh steam and advances to new three-month peaks near the 1.3560 zone on Friday. Cable’s sharp move higher comes after three daily drops in a row and follows the increasing selling pressure hurting the Greenback.

EUR/USD pops to fresh two-month highs, targets 1.1600

EUR/USD advances markedly, revisiting the upper 1.1500s for the first time since mid-June. The pair’s sharp uptick comes on the back of a strong retracement in the US Dollar amid BoJ intervention chatter and despite steady uncertainty in the Middle East.

Gold picks up pace, approaches $4,400

Gold rebounds toward the $4,400 mark per troy ounce on Friday, reversing the previous day’s pullback. The precious metal’s recovery comes as fresh and intense weakness keep weighing on the US Dollar, while traders keep assessing easing expectations of an imminent Fed interest rate hike and the situation from the Middle East.

Pi Network Price Forecast: PI extends consolidation as bulls eye $0.10

Pi Network (PI) price holds steady on Friday, maintaining a consolidating tone for three consecutive days. Mild retail strength in the PI token remains stable, with Open Interest above $9 million, while social buzz eases. PI token’s technical outlook is mixed, as bearish momentum wanes to neutral, with bulls eyeing the $0.1000 psychological level.

Weekly focus: Some relief in US inflation concerns

Actual inflation data for July came out as expected with a 0.1% m/m increase in headline CPI and 0.2% excluding food and energy. Annual headline inflation remains too high at 3.4% and means that wage earners are experiencing stagnating spending power at best, and core inflation is a bit higher than the inflation target of two percent would suggest.

Why is Crude Oil priced for a reopening the ships haven't made?

Fourteen vessels crossed the Strait of Hormuz on Tuesday. Before the war, the count ran near 120 a day. In the sessions since the waterway was publicly declared open, Brent has drifted back to $87 and West Texas Intermediate (WTI) to $81, both a little lower again on Wednesday, with daily momentum on each unwound from the top of its range in late July to the low twenties now.