NZD/USD: Further upside in store above 0.6045 – UOB

Pablo Piovano FXStreet

NZD/USD needs to clear the 0.6045 region to allow for a potential advance to the 0.6100 zone, note UOB Group’s Economist Lee Sue Ann and Markets Strategist Quek Ser Leang.

Key Quotes

24-hour view: Yesterday, we held the view that NZD “is likely to edge above 0.6000, but it is unlikely to threaten the major resistance at 0.6025.” NZD strengthened more than expected as it rose to a high of 0.6028. The rapid buildup in momentum suggests NZD could break the next resistance at 0.6045. In view of the overbought conditions, NZD might not be able to maintain a foothold above this level. The upside pressure will ease if NZD breaks below 0.5985 (minor support is at 0.6005).

Next 1-3 weeks: Our latest narrative was from last Friday (06 Oct, spot at 0.5965), wherein the recent downward momentum has eased and NZD is likely to trade in a range between 0.5890 and 0.6025. Yesterday, NZD rose above 0.6025 (high has been 0.6028). Upward momentum is improving, but NZD must break and stay above 0.6045 before a rise towards 0.6100 is likely. Overall, only a breach of the ‘strong support’ level (currently at 0.5960) would indicate that the risk of NZD breaking clearly above 0.6045 has faded.

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.

AUD/USD looks bid; retargets 0.7000

AUD/USD has managed to regain the 0.6900 hurdle and beyond in quite an auspicious start to the new trading week. The pair’s marked recovery has come on the back of the resurgence of the geopolitics-led selling pressure on the Greenback ahead of the release of key US CPI prints on Tuesday.

USD/JPY retreat in sync with USD, appraches 158.00

USD/JPY is back in the red at the start of the week on Monday, eyeing the broad US Dollar retreat amid easing US-Iran tensions. Traders also resorting to profit-taking following the blockbuster US Nonfarm Payrolls data-led rally. US CPI report is next in focus.

Gold keeps the bid tone near $4,100

Gold resumes its recovery on Monday, hovering around the $4,100 region per troy ounce. The precious metal’s solid performance comes amid fresh downside pressure on the US Dollar, rising US Treasury yields and a marked retracement in crude oil prices.

Ethereum Price Forecast: ETH drops to $2,100 as community debates Vitalik Buterin's SoV pitch

Ethereum (ETH) is down 4.6% on Monday as the crypto community debated co-founder Vitalik Buterin's argument that the top altcoin's long-term value should come from its store-of-value (SoV) properties rather than transaction fee burning.

Two Huangs don’t make a right: Nvidia CEO caught in scandal – NVDA slides

Nvidia CEO Jensen Huang sent employees an apology for being unfaithful to his wife, following reports that he may have been targeted in a foreign intelligence operation. Why is Nvidia trading roughly 5–6% below Friday’s close in the overnight market? And – more importantly – does this actually matter to the AI trade?

Gold reclaimed $4,100. Tuesday’s CPI test decides if it holds

Gold (XAU/USD) starts the week on a positive note, reclaiming the $4,100 psychological level as the US Dollar (USD) retreats from its recent highs. The precious metal recovers from Friday's losses, although investors remain cautious ahead of Tuesday's US Consumer Price Index (CPI) report, which could determine the next direction for Bullion.