NZD/USD expected to keep the side-lined theme – UOB

Pablo Piovano FXStreet

NZD/USD is still seen navigating a broad consolidative pattern, suggested FX Strategists at UOB Group.

Key Quotes

24-hour view: “NZD traded between 0.5851 and 0.5961 yesterday, wider than our expected range of 0.5850/0.5940 range before ending the day on a strong note at 0.5927 (+1.07%). Upward momentum has picked up and this could lead NZD moving higher towards 0.5985. For today, a rise beyond 0.6020 is not expected. Support is at 0.5910 followed by 0.5870.”

Next 1-3 weeks: “While our ‘strong support’ level of 0.5880 ‘survived’ for the second straight day (overnight low of 0.5881), the price action is enough to indicate that last Friday’s (27 Mar) high of 0.6067 is a short-term top. From here, the immediate risk is tilted to the downside but any weakness is viewed as part of a 0.5820/0.6020 range (a sustained decline below 0.5820 appears unlikely for now). In other words, NZD is likely to trade within a broad range a period.”

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: US Dollar to remain pressured until uncertainty fog dissipates

Unimpressive European Central Bank left monetary policy unchanged for the fifth consecutive meeting. The United States first-tier employment and inflation data is scheduled for the second week of February. EUR/USD battles to remain afloat above 1.1800, sellers moving to the sidelines.

GBP/USD reclaims 1.3600 and above

GBP/USD reverses two straight days of losses, surpassing the key 1.3600 yardstick on Friday. Cable’s rebound comes as the Greenback slips away from two-week highs in response to some profit-taking mood and speculation of Fed rate cuts. In addition, hawkish comments from the BoE’s Pill are also collaborating with the quid’s improvement.

Gold: Volatility persists in commodity space

After losing more than 8% to end the previous week, Gold remained under heavy selling pressure on Monday and dropped toward $4,400. Although XAU/USD staged a decisive rebound afterward, it failed to stabilize above $5,000. The US economic calendar will feature Nonfarm Payrolls and Consumer Price Index data for January, which could influence the market pricing of the Federal Reserve’s policy outlook and impact Gold’s performance.

Week ahead: US NFP and CPI data to shake Fed cut bets, Japan election looms

US NFP and CPI data awaited after Warsh’s nomination as Fed chief. Yen traders lock gaze on Sunday’s snap election. UK and Eurozone Q4 GDP data also on the agenda. China CPI and PPI could reveal more weakness in domestic demand.

Three scenarios for Japanese Yen ahead of snap election

The latest polls point to a dominant win for the ruling bloc at the upcoming Japanese snap election. The larger Sanae Takaichi’s mandate, the more investors fear faster implementation of tax cuts and spending plans.

XRP rally extends as modest ETF inflows support recovery

Ripple is accelerating its recovery, trading above $1.36 at the time of writing on Friday, as investors adjust their positions following a turbulent week in the broader crypto market. The remittance token is up over 21% from its intraday low of $1.12.