NZD/USD: Extra gains appear likely near term – UOB

Pablo Piovano FXStreet

In the view of UOB Group’s Markets Strategist Quek Ser Leang and Economist Lee Sue Ann, NZD/USD needs to clear 0.6055 to allow for further gains in the near term.

Key Quotes

24-hour view: On Tuesday, NZD jumped to a high of 0.6013. Yesterday (Wednesday), when NZD was trading at 0.6000, we indicated that “there is scope for NZD to rise further.” We also indicated that NZD “is unlikely to break clearly above 0.6055.” Our view turned out to be correct as NZD rose to 0.6055 before easing off to end the day at 0.6023 (+0.25%). Upward pressure has eased somewhat, and NZD is unlikely to rise further. Today, NZD is more likely to trade in a sideways range of 0.5980/0.6045.

Next 1-3 weeks: Our update from yesterday (15 Nov, spot at 0.6000) still stands. As highlighted, while we expect NZD to strengthen further, it has to break clearly above 0.6055 before an advance to 0.6100 is likely. Note that NZD rose briefly to 0.6055 in NY trade before pulling back. The chance of NZD breaking clearly above 0.6055 will remain intact as long as it stays above 0.5920 (‘strong support’ level was at 0.5900 yesterday).

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 remains depressed below mid-1.1800s; downside potential seems limited

The EUR/USD pair attracts some sellers for the second consecutive day on Tuesday and hovers below mid-1.1800s amid a relatively quiet trading action during the Asian session. The broader fundamental backdrop, however, warrants some caution for bearish traders before positioning for deeper losses.

When is the UK employment data and how could it affect GBP/USD?

The United Kingdom labor market data for the three months ending December is scheduled to be published today at 07:00 GMT. GBP/USD trades 0.16% lower to near 1.3610 at the press time. The 20-period Exponential Moving Average slips to 1.3631 and caps rebounds as price holds below the gauge.

Gold downside appears capped ahead of US-Iran talks

Gold is off the lows but remains under moderate selling pressure below the $5,000 threshold early Tuesday. Gold now looks to the US-Iran nuclear deal talks for a fresh trading impetus as US traders return after the long weekend.

Jupiter rises on native SOL staking, TVL rebound

Jupiter edges higher by 3% at press time on Tuesday, approaching the $0.1700 level. The lending protocol announced native staking as collateral, allowing users to borrow against natively staked SOL on certain vaults.

The week ahead: Key inflation readings and why the AI trade could be overdone

It is likely to be a quiet start to the week, with US markets closed on Monday for Presidents Day. European markets are higher across the board and gold is clinging to the $5,000 level after the tamer than expected CPI report in the US reduced haven flows to precious metals.

XRP steadies in narrow range as fund inflows, futures interest rise

Ripple is trading in a narrow range between $1.45 (immediate support) and $1.50 (resistance) at the time of writing on Monday. The remittance token extended its recovery last week, peaking at $1.67 on Sunday from the weekly open at $1.43.