NZD/USD faces a tough barrier at 0.7210 – UOB

Pablo Piovano FXStreet

UOB Group’s FX Strategists noted NZD/USD’s upside is predicted to meet a solid resistance above the 0.7200 mark.

Key Quotes

24-hour view: “After the strong surge in NZD last Friday (03 Sep), we highlighted yesterday (06 Sep) that ‘the sharp and rapid rise appears to be overdone and NZD is unlikely to strengthen further’. We expected NZD to ‘consolidate and trade within a 0.7120/0.7170 range’. Our view for consolidation was not wrong even though NZD traded within a narrower range than expected (0.7128/0.7167). The current movement is still viewed as part of a consolidation but the slightly firmed underlying tone suggests a higher trading range of 0.7130/0.7175 range.”

Next 1-3 weeks: “There is not much to add to our update from yesterday (06 Sep, spot at 0.7150). As highlighted, the sharp and rapid rise from last Friday appears to be running ahead of itself and it is left to be seen if the next major resistance at 0.7210 would come into the picture this time round. That said, the current NZD strength that started about 2 weeks ago (see annotations in the chart below) is deemed intact as long as 0.7080 is not breached (no change in ‘strong support’ level from 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.

GBP/USD loses momentum, flirts with 1.3200

GBP/USD is struggling to maintain its positive bias on Thursday, retreating toward the 1.3200 region in response to the pick in the buying interest around the Greenback. That said, Cable remains under scrutiny as cautious market sentiment keeps investors focused on the US-Iran conflict and political effervescence in the UK.

EUR/USD trims gains, challenges 1.1400

EUR/USD now gives away part of its earlier advance, receding toward the 1.1400 contention zone on Thursday. Meanwhile, the pair’s recovery comes amid extra losses in the US Dollar, at the time when while investors continue to monitor developments in the Middle East and sentiment surrounding global technology stocks.

Gold remains bid and close to $4,100

Gold accelerates its recovery and approaches the key $4,000 mark per troy ounce at the end of the week, adding to Thursday’s advance. However, expectations for a hawkish Fed remain steady and keep the yellow metal’s potential upside contained.

Crypto Today: Bitcoin at $60,000, Ethereum at $1,500, and XRP at $1 face a make-or-break test

Bitcoin (BTC), Ethereum (ETH), and Ripple (XRP) are trading in the red on Friday after three consecutive days of losses, testing their respective make-or-break support levels.

Week ahead – NFP report to challenge Dollar strength and the hawkish Fed

Dollar strength dominates markets, as the hawkish Fed overshadows geopolitics and lower oil prices. NFP week could drive September Fed hike expectations and boost market volatility. The euro lacks fresh bullish catalysts, all eyes on the preliminary inflation report and the ECB Forum.

Regime change: Inside Kevin Warsh's first move to make the Fed unreadable on purpose

The rate did not move. That was the least interesting thing about Kevin Warsh's first meeting in charge of the Fed. The FOMC held its benchmark at 3.50%-3.75% for the fourth straight meeting, exactly as priced, and then the new chair used his first press conference to dismantle the machinery the market has leaned on for a decade.