NZD/USD faces extra consolidation, likely between 0.6450/0.6595 – UOB

Pablo Piovano FXStreet

NZD/USD is now seen extending the consolidative fashion between 0.6450 and 0.6595 in the next weeks, suggested FX Strategists at UOB Group.

Key Quotes

24-hour view: “NZD traded between 0.6537 and 0.6593 yesterday, close to our expected sideway-trading range of 0.6540/0.6595. However, downward momentum has picked up as NZD closed on a soft note at 0.6543 (-0.44%). From here, NZD could weaken towards 0.6500 but for today, the prospect for a sustained decline below this level is not high (next support is at 0.6475). Resistance is at 0.6560 followed by 0.6575. The 0.6593 high is not expected to come into the picture.”

Next 1-3 weeks: “We highlighted yesterday that ‘we continue to see chance of NZD posting a close above 0.6610 but the odds for such a move have diminished considerably’. NZD subsequently rose to a high of 0.6593 before dropping back down quickly. While our ‘strong support’ at 0.6520 is still intact, the rapid loss in momentum is enough to indicate the positive phase that started earlier this month has run its course. From here, NZD could edge lower but for now, any weakness is viewed as part of a 0.6450/0.6595 range.”

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 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.