NZD/USD faces further consolidation near term – UOB

Pablo Piovano FXStreet

The Kiwi Dollar is now poised to move into a consolidative theme vs. the greenback, noted FX Strategists at UOB Group.

Key Quotes

24-hour view: “We expected a higher NZD yesterday but were of the view that “a sustained break above 0.6590 is not expected”. NZD subsequently surged to a high of 0.6590 but the up-move was short-lived. Despite the rapid pull-back from the high, the underlying tone is still firm and the downside risk appears to be limited. NZD is more likely to consolidate and trade sideways for now, expected to be within a 0.6550/0.6600 range”.

Next 1-3 weeks: “While we expected a lower NZD, we highlighted in recent updates that “we are not convinced that the current weakness can move below 0.6475 in a sustained manner”. That said, the sudden overnight surge was unexpected as NZD hit a high of 0.6565. While there is no change to the current neutral outlook, the 0.6501 low registered on Tuesday (11 Sep) is deemed as a short-term bottom. From here, NZD is expected to trade sideways to slightly higher, likely within a 0.6520/0.6615 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 trims losses, back to 1.1830

EUR/USD manages to regain some composure, leaving behind part of the earlier losses and reclaim the 1.1830 region on Tuesday. In the meantime, the US Dollar’s upside impulse loses some momentum while investors remain cautious ahead of upcoming US data releases, including the FOMC Minutes.

GBP/USD bounces off lows, retargets 1.3550

After bottoming out just below the 1.3500 yardstick, GBP/USD now gathers some fresh bids and advances to the 1.3530-1.3540 band in the latter part of Tuesday’s session. Cable’s recovery comes as the Greenback surrenders part of its advance, although it keeps the bullish bias well in place for the day.

Gold remains offered below $5,000

Gold stays on the defensive on Tuesday, receding to the sub-$5,000 region per troy ounce on the back of the persistent move higher in the Greenback. The precious metal’s decline is also underpinned by the modest uptick in US Treasury yields across the spectrum.

Crypto Today: Bitcoin, Ethereum, XRP upside looks limited amid deteriorating retail demand

The cryptocurrency market extends weakness with major coins including Bitcoin (BTC), Ethereum (ETH) and Ripple (XRP) trading in sideways price action at the time of writing on Tuesday.

UK jobs market weakens, bolstering rate cut hopes

In the UK, the latest jobs report made for difficult reading. Nonetheless, this represents yet another reminder for the Bank of England that they need to act swiftly given the collapse in inflation expected over the coming months.

Ripple slides to $1.45 as downside risks surge

Ripple edges lower at the time of writing on Tuesday, from the daily open of $1.48, as headwinds persist across the crypto market. A short-term support is emerging at $1.45, but a buildup of bearish positions could further weaken the derivatives market and prolong the correction.