NZD/USD: Likely to range-trade between 0.5760 and 0.5805 – UOB Group

FXStreet Insights Team FXStreet

New Zealand Dollar (NZD) is likely to range-trade between 0.5760 and 0.5805. In the longer run, outlook for NZD has shifted to negative; the level to watch is 0.5690, UOB Group’s FX analysts Quek Ser Leang and Peter Chia note.

Outlook for NZD has shifted to negative

24-HOUR VIEW: "NZD plunged in the early Asian trade yesterday. When it was at 0.5750, we indicated that 'the sharp drop appears excessive, but there is scope for NZD to test 0.5720.' We added, 'the next support at 0.5690 is unlikely to come into view.' NZD did not test 0.5720, as it rebounded strongly from a low of 0.5738. The strong rebound from deeply oversold conditions suggests that instead of continuing to weaken, NZD is more likely to range-trade today, probably between 0.5760 and 0.5805."

1-3 WEEKS VIEW: "We highlighted yesterday (08 Oct, spot at 0.5750) that 'the outlook for NZD has shifted to negative, and the level to watch is 0.5690.' There is no change in our view even though deeply oversold short-term conditions could lead to a few days of consolidation first. Overall, only a breach of 0.5820 (no change in ‘strong resistance’ level) would indicate that the weakness in NZD has stabilised."

Author

FXStreet Insights Team

FXStreet

The FXStreet Insights Team is a group of journalists that handpicks selected market observations published by renowned experts. The content includes notes by commercial as well as additional insights by internal and external analysts.

AUD/USD keeps range near mid-0.7100s as USD bulls await US CPI

AUD/USD steadies near mid-0.7100s in the Asian session on Friday, stalling the previous day's sharp decline to an over one-week low. The August PPI report reaffirmed Fed rate-hike bets and boosted the US Dollar on Thursday, which weighed heavily on the pair. However, hawkish RBA expectations limited losses for the Aussie as USD bulls now await the release of the US consumer inflation figures before placing fresh bets.

USD/JPY holds lower ground toward 154.00; looks to US CPI

USD/JPY holds lower ground toward 154.00 in the Asian session on Friday after hot Japanese PPI data bolster a more hawkish BoJ repricing and provide fresh impetus to the Japanese Yen. However, the downside appears capped as the US Dollar preserves overnight gains ahead of the latest US consumer inflation data.

Gold: Gains remain capped by $4,400

Gold regains composure and trades with decent gains on Friday, managing to refocus attention on the $4,440 mark per ounce troy. Therefore, the precious metal reverses Thursday’s decline as the US Dollar alternates gains with losses at the end of the week.

Ripple Price Forecast: XRP extends decline as returning ETF inflows fail to lift outlook

Ripple (XRP) falls below $1.33 on Friday, marking the third consecutive day of declines. The token continues to track the broader cryptocurrency market downturn, with investors closely monitoring heightened macroeconomic uncertainty ahead of the United States (US) Consumer Price Index (CPI) release and next week’s Federal Reserve (Fed) monetary policy decision.

Weekly focus – The hawks set the tone

Risky assets came under pressure this week as energy prices kept creeping higher and the ECB surprised the markets with a hawkish tone. The price of Brent crude touched USD 110 per barrel on Thursday night, highest since mid-May, as news emerged that the Yemeni Houthis had reached control of key port cities and islands near the Bab el-Mandeb strait.

Venezuela’s 65-billion-barrel Oil deal could reshape America’s inflation fight

The United States (US) has secured unprecedented access to part of Venezuela’s vast Oil reserves. The timing is particularly significant as the war with Iran is disrupting Middle Eastern supplies, keeping energy prices elevated and reviving concerns about inflation.