NZD/USD flies above 0.66 and beyond – ANZ

FXStreet Team FXStreet

The Kiwi is flying, up 0.2% on the day to 0.6655, after breaking convincingly through 0.66 for the first time since the COVID-19 crisis. In the opinion of economists at ANZ Bank it is difficult to see momentum cooling down, therefore, they look for the 0.6755 resistance.

Key quotes

“The Kiwi made a clean break through 0.66 for the first time since the COVID-19 crisis. The move was fuelled mostly by global factors (equity rally, USD weakness, growing vaccine optimism), but with a local flavour too, with higher WMP prices giving it a boost.”

“Minor corrections aside, it’s difficult to see the momentum subsiding, even though markets seem to be ‘priced for perfection’, suggesting a degree of fragility. Consider, for example, what may happen if vaccine hopes are dashed, or geopolitical tensions flare up. But for now, it’s ‘all go’ for the Kiwi.”

“Support 0.6450 Resistance 0.6755”

Author

FXStreet Team

FXStreet

EUR/USD treads water above 1.1850 amid thin trading

EUR/USD stays defensive but holds 1.1850 amid quiet markets in the European hours on Monday. The US Dollar is struggling for direction due to thin liquidity conditions as US markets are closed in observance of Presidents' Day.

GBP/USD flat lines as traders await key UK and US macro data

GBP/USD kicks off a new week on a subdued note and oscillates in a narrow range near 1.365 in Monday's European trading. The mixed fundamental backdrop warrants some caution for aggressive traders as the market focus now shifts to this week's important releases from the UK and the US.

Gold sticks to intraday losses; lacks follow-through

Gold remains depressed through the early European session on Monday, though it has managed to rebound from the daily trough and currently trades around the $5,000 psychological mark. Moreover, a combination of supporting factors warrants some caution for aggressive bearish traders, and before positioning for deeper losses.

Bitcoin, Ethereum and Ripple consolidate within key ranges as selling pressure eases

Bitcoin and Ethereum prices have been trading sideways within key ranges following the massive correction. Meanwhile, XRP recovers slightly, breaking above the key resistance zone. The top three cryptocurrencies hint at a potential short-term recovery, with momentum indicators showing fading bearish signs.

Global inflation watch: Signs of cooling services inflation

Realized inflation landed close to expectations in January, as negative base effects weighed on the annual rates. Remaining sticky inflation is largely explained by services, while tariff-driven goods inflation remains limited even in the US.

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.