- The kiwi appreciates for the sitch day in a row to reach levels past 0.7200.
- A higher appetite for risk buoys the NZD and hurts the US dollar.
- NZD/USD: Seen appreciating to 0.7462/07569 – Commerzbank.
The New Zealand dollar has appreciated further on Wednesday, breaching the previous four-months high, at 0.7170, to explore prices above 0.7200 for the first time since June. The pair is extending its rally for the sixth consecutive day favored by a somewhat weaker US dollar.
The kiwi appreciates on a risk-on session
A string of positive quarterly earnings, with better-than-expected quarterly earnings figures in the Healthcare sector, following upbeat results in the banking sector last week, have buoyed market mood and offset concerns about inflation and supply-chain bottlenecks.
The S&P 500 Index is rallying for the sixth day in a row on Wednesday, pushing against year-to-date highs at 4.545 buoyed by better-than-expected quarterly earnings of the insurance company Anthem and the pharmaceutical Abbott Laboratories, with all eyes on Tesla’s results, which are expected to release record-high earnings in spite of supply-chain restrictions.
Furthermore, US Treasury yields’ rally, boosted by expectations of an imminent announcement of QE tapering by the Federal Reserve, seems to have taken a breather. Other major central banks, namely the Bank of England and the Bank of Canada, are suggesting the possibility of accelerating their monetary normalization plans to tackle high inflation and are pushing the Fed out of the limelight.
In this backdrop, the US Dollar Index, which measures the value of the dollar against the most traded currencies, has extended its retreat to 93.50 area, 1% below the one-year high, at 94.50, hit last week.
NZD/USD is aiming towards 0.7462/0.7559 – Commerzbank
From a technical perspective, Karen Jones, Team Head FICC Technical Analysis Research at Commerzbank sees further upside potential on the pair and points out to the 0.7462/0.7559 area: “NZD/USD yesterday broke above the 2021 downtrend and its 200-day ma and its 55-week ma at 0.7101/04, this was one tough nut to crack and the break above here should lead to some further dollar weakness (…) Target 0.7462/0.7559 long-term pivot.”
Technical levels to watch
|Today last price||0.7203|
|Today Daily Change||0.0049|
|Today Daily Change %||0.68|
|Today daily open||0.7154|
|Previous Daily High||0.7173|
|Previous Daily Low||0.7079|
|Previous Weekly High||0.7078|
|Previous Weekly Low||0.6912|
|Previous Monthly High||0.7171|
|Previous Monthly Low||0.6859|
|Daily Fibonacci 38.2%||0.7137|
|Daily Fibonacci 61.8%||0.7115|
|Daily Pivot Point S1||0.7098|
|Daily Pivot Point S2||0.7041|
|Daily Pivot Point S3||0.7004|
|Daily Pivot Point R1||0.7192|
|Daily Pivot Point R2||0.7229|
|Daily Pivot Point R3||0.7286|
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.