NZD/USD is on the back foot from daily resistance

NZD/USD tops out and the focus is on the downside from daily resistance.
US dollar remains on the backfoot as Fed heads fan the dovish flames.

Ross J Burland FXStreet

NZD/USD is currently trading at 0.7141, virtually flat on the day having travelled from a low of 0.7135 and reaching a high of 0.7143.

Yesterday’s Reserve Bank of New Zealand's MPR has been brushed aside and instead the market is more focused on the ongoing USD weakness.

The Federal Reserve Chairman Jerome Powell said in remarks at the Economic Club of Washington it was highly unlikely the central bank would raise interest rates before the end of 2022.

The Vice-chair, Richard Harris Clarida echoed such rhetoric who said rates will be lower for longer and that the Fed will delay lift-off.

Meanwhile, the Fed said in its latest "Beige Book" that the US recovery accelerated to a moderate pace from late February to early April.

By the end of the day, the benchmark 10-year notes rose 1.3 basis points to yield 1.6359%. The dollar index fell to 91.5740.

''The NZD should be well supported by commodity prices and the global cyclical uplift – we firmly believe that, but USD weakness over the past few weeks does feel a bit extreme given the decent state of recent data. Time will tell,'' analysts at ANZ Bank explained.

NZD/USD technical analysis

Author

Ross J Burland

FXStreet

Ross J Burland, born in England, UK, is a sportsman at heart. He played Rugby and Judo for his county, Kent and the South East of England Rugby team.

EUR/USD meets initial support around 1.1800

EUR/USD remains on the back foot, although it has managed to reverse the initial strong pullback toward the 1.1800 region and regain some balance, hovering around the 1.1850 zone as the NA session draws to a close on Tuesday. Moving forward, market participants will now shift their attention to the release of the FOMC Minutes and US hard data on Wednesday.

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.

Ethereum Price Forecast: BitMine extends ETH buying streak, says long-term outlook remains positive

Ethereum (ETH) treasury firm BitMine Immersion continued its weekly purchase of the top altcoin last week after acquiring 45,759 ETH.

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.