NZD/USD downside playing out despite spike in oil

Ross J Burland FXStreet

Despite a spike in oil back above the $50 handle, NZD/USD is in free-fall in a negative day from the highs of 0.7167 down to the 0.7109 lows recently scored.

NZD/USD has been better offered at the end of this week from 0.7183 in a renewed downside leg in the 2016 sell-off from 0.7484. The RBNZ is expected to cut rates to 1.75% in November while the Fed is expected to tighten to 0.625% in December, underpinning the resurgence i the greenback this week while data continues to come mixed. For today,

Durable goods orders fell 0.1% to $227.3 billion in September from a month earlier. This is following two consecutive monthly increases that followed a 0.3% August increase. Initial jobless claims decreased by 3,000 to a seasonally adjusted 258,000 in the week ended Oct. 21, the Labor Department said Thursday, above expectations of 255,000. Claims for the week ended Oct. Continuing jobless claims decreased by 15,000 to 2,039,000 in the week ended Oct. 14 to the lowest level since June 2000.

NZD/USD levels

NZD/USD 1-3 month: "Targets 0.6950 or lower as long as the RBNZ cuts to 1.75% in November and the Fed tightens to 0.625% in December, as we expect," Westpac

Current price is 0.7118, with resistance ahead at 0.7122 (Daily Classic S2), 0.7138 (Daily Classic S1), 0.7138 (Weekly Low), 0.7143 (Hourly 20 EMA) and 0.7146 (Yesterday's Low). Next support to the downside can be found at 0.7110 (Daily Low), 0.7098 (Daily Classic S3), 0.7072 (Weekly Classic S1), 0.7056 (Monthly Low) and 0.6980 (Weekly Classic S2).

Author

Ross J Burland

FXStreet

Ross J Burland, born in England, UK, is a sportsman at heart. He played Rugby and Judo for his county, Kent and the South East of England Rugby team.

EUR/USD flirts with daily highs, retargets 1.1900

EUR/USD regains upside traction, returning to the 1.1880 zone and refocusing its attention to the key 1.1900 barrier. The pair’s slight gains comes against the backdrop of a humble decline in the US Dollar as investors continue to assess the latest US CPI readings and the potential Fed’s rate path.

GBP/USD remains well bid around 1.3650

GBP/USD maintains its upside momentum in place, hovering around daily highs near 1.3650 and setting aside part of the recent three-day drop. Cable’s improved sentiment comes on the back of the Greenback’s irresolute price action, while recent hawkish comments from the BoE’s Pill also collaborate with the uptick.

Gold clings to gains just above $5,000/oz

Gold is reclaiming part of the ground lost on Wednesday’s marked decline, as bargain-hunters keep piling up and lifting prices past the key $5,000 per troy ounce. The precious metal’s move higher is also underpinned by the slight pullback in the US Dollar and declining US Treasury yields across the curve.

Crypto Today: Bitcoin, Ethereum, XRP in choppy price action, weighed down by falling institutional interest

Bitcoin's upside remains largely constrained amid weak technicals and declining institutional interest. Ethereum trades sideways above $1,900 support with the upside capped below $2,000 amid ETF outflows.

Week ahead – Data blitz, Fed Minutes and RBNZ decision in the spotlight

US GDP and PCE inflation are main highlights, plus the Fed minutes. UK and Japan have busy calendars too with focus on CPI. Flash PMIs for February will also be doing the rounds. RBNZ meets, is unlikely to follow RBA’s hawkish path.

Ripple Price Forecast: XRP potential bottom could be in sight

Ripple edges up above the intraday low of $1.35 at the time of writing on Friday amid mixed price actions across the crypto market. The remittance token failed to hold support at $1.40 the previous day, reflecting risk-off sentiment amid a decline in retail and institutional sentiment.