NZD/USD: Downside pressure alleviated above 0.6255 – UOB

Pablo Piovano FXStreet

A move above 0.6255 should mitigate the selling bias in NZD/USD in the short term, suggest UOB Group’s Economist Lee Sue Ann and Markets Strategist Quek Ser Leang.

Key Quotes

24-hour view: Yesterday, we expected NZD to trade in a range between 0.6185 and 0.6235. Our view was not wrong, as NZD traded close to our expected range (0.6184/0.6235). The price actions appear to be consolidative, and we continue to expect NZD to trade in a range of 0.6185/0.6235.

Next 1-3 weeks: On Monday (24 Jul, spot at 0.6175), we highlighted that improved downward momentum is likely to lead to NZD weakness to 0.6125. Since then, NZD has not been able to make any headway on the downside. Downward pressure is beginning to wane. However, only a breach of 0.6255 (no change in ‘strong resistance’ level) would suggest NZD is not weakening further.

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.

AUD/USD looks bid; retargets 0.7000

AUD/USD has managed to regain the 0.6900 hurdle and beyond in quite an auspicious start to the new trading week. The pair’s marked recovery has come on the back of the resurgence of the geopolitics-led selling pressure on the Greenback ahead of the release of key US CPI prints on Tuesday.

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 keeps the bid tone near $4,100

Gold resumes its recovery on Monday, hovering around the $4,100 region per troy ounce. The precious metal’s solid performance comes amid fresh downside pressure on the US Dollar, rising US Treasury yields and a marked retracement in crude oil prices.

NYSE taps Avalanche for clearing and settlement of tokenized securities

Avalanche defied the crypto market drawdown on Monday, up 4% after announcing it will provide the core ledger technology for clearing in the New York Stock Exchange's upcoming tokenized securities trading platform.

US CPI preview: Moderation on the horizon, but underlying pressures linger

The US Consumer Price Index for October will be released on Tuesday, November 10, at a time when financial markets are receiving rather different signals from inflation, employment and credit conditions. September's inflation report showed headline consumer prices rising by 0.6% month over month, while core inflation increased by 0.3%.

Gold reclaimed $4,100. Tuesday’s CPI test decides if it holds

Gold (XAU/USD) starts the week on a positive note, reclaiming the $4,100 psychological level as the US Dollar (USD) retreats from its recent highs. The precious metal recovers from Friday's losses, although investors remain cautious ahead of Tuesday's US Consumer Price Index (CPI) report, which could determine the next direction for Bullion.