NZD/USD hits 34-month high as S&P lifts New Zealand's credit rating

NZD/USD crosses above January's high to reach the highest level since April 2018.
S&P lifts New Zealand's credit rating, drawing more bids for the Kiwi.
The Kiwi has been bid in recent days with commodities rallying on expectations for economic recovery.

Omkar Godbole FXStreet Contributor

NZD/USD extends early gains, with major ratings agency Standard & Poor's (S&P) raising New Zealand's credit rating to AA+ from AA.

"We now believe that the government's credit metrics can withstand potential damage from negative shocks to the economy," the rating agency noted, adding that the country has been able to contain the coronavirus pandemic better than most others, and its economy is recovering relatively quickly.

The Kiwi reached a high of 0.7338 soon before press time – the level last seen in April 2018 – extending the early rise from 0.7289 to 0.7315 and surpassing the previous multi-year peak of 0.7315 reached on Jan. 6.

The NZD and other commodity dollars such as the AUD and CAD have been trending north against the US dollar in recent days, tracking the rally in commodities such as oil, copper, iron ore, and other base metals.

Analysts at JP Morgan said earlier this month that commodities have just begun a new supercycle of years-long gains. The reflation trade seems to have been fueled by coronavirus vaccine optimism and expectations for fiscal stimulus-driven recovery.

Technical levels

NZD/USD

Overview
Today last price	0.733
Today Daily Change	0.0032
Today Daily Change %	0.44
Today daily open	0.7298

Trends
Daily SMA20	0.7206
Daily SMA50	0.7168
Daily SMA100	0.6989
Daily SMA200	0.6761

Levels
Previous Daily High	0.7316
Previous Daily Low	0.7203
Previous Weekly High	0.7316
Previous Weekly Low	0.7158
Previous Monthly High	0.7316
Previous Monthly Low	0.7096
Daily Fibonacci 38.2%	0.7273
Daily Fibonacci 61.8%	0.7246
Daily Pivot Point S1	0.7229
Daily Pivot Point S2	0.716
Daily Pivot Point S3	0.7116
Daily Pivot Point R1	0.7341
Daily Pivot Point R2	0.7385
Daily Pivot Point R3	0.7454

Author

Omkar Godbole

FXStreet Contributor

Omkar Godbole, editor and analyst, joined FXStreet after four years as a research analyst at several Indian brokerage companies.

USD/JPY eyes August swing low, near 155.20 ahead of US NFP

USD/JPY retests the August monthly swing low during the Asian session on Friday as a more hawkish repricing of BoJ rate-hike bets and a suspected intervention continue to underpin the Japanese Yen. Meanwhile, the US Dollar is seen consolidating the previous day's heavy losses amid soft US bond yields, further weighing on the currency pair as traders keenly await the US NFP report.

AUD/USD consolidates above 0.7200; US NFP awaited

AUD/USD holds steady above 0.7200, near its highest level since mid-May, as bulls await the US NFP report for more cues on the Fed's policy path before placing fresh bets. Meanwhile, the recent decline in US bond yields keeps the US Dollar depressed near its lowest level in over a week and acts as a tailwind for the Aussie amid the RBA's hawkish tilt.

Gold tumbles as blockbuster US NFP lift US Dollar, Treasury yields

Gold (XAU/USD) falls sharply on Friday, snapping a two-day recovery after the US Nonfarm Payrolls (NFP) report surprised strongly to the upside. The metal briefly climbed above $4,500 on Thursday, gaining nearly 2%, but has since erased a large part of that advance.

Crypto’s $638 million buyback boom may not be as bullish as it looks

Decentralized Finance (DeFi) protocols reportedly spent $638 million to buy back their native tokens in August, up 17% from a year earlier. On the surface, the buyback trend suggests the cryptocurrency industry is maturing fast, adopting one of Wall Street’s oldest tools to bolster valuations and distribute revenue. The headline becomes less impressive once the number is opened up.

Why hawkish Bank of Japan expectations aren't enough to sustain the Japanese Yen rally

The Japanese Yen (JPY) experienced a sudden burst higher after falling back below the 160.00 psychological mark against the US Dollar (USD) earlier this week amid a more hawkish repricing of Bank of Japan (BoJ) rate hike expectations.

Diesel’s record $100 warning: The oil shock hiding in plain sight

The Oil market may look calmer than it did a few months ago, but diesel is sending a very different message. The US diesel crack spread, the premium of ultra-low sulphur diesel futures over WTI, recently surged above $100 per barrel for the first time, reaching an intraday record of just over $102.00.