NZD/USD: Likely to trade in a range between 0.5760 and 0.5800 – UOB Group

FXStreet Insights Team FXStreet

New Zealand Dollar (NZD) is likely to trade in a range between 0.5760 and 0.5800. In the longer run, NZD is likely to trade in a range between 0.5740 and 0.5825, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.

NZD is likely to trade in a range

24-HOUR VIEW: "We expected NZD to 'trade in a range between 0.5760 and 0.5800' yesterday. NZD then traded in a higher range of 0.5769/0.5810, closing largely unchanged at 0.5784 (-0.09%). Momentum indicators remain mostly flat, and we continue to expect NZD to trade in a range between 0.5760 and 0.5800 today."

1-3 WEEKS VIEW: "In our update on Monday (05 Jan, spot at 0.5755), we indicated that 'the pullback in NZD from last month’s high of 0.5853 has scope to extend'. However, we were of the view that 'any decline is expected to face strong support at 0.5720'. Yesterday, NZD rose above our ‘strong resistance’ level of 0.5800. The breach of 0.5800 has invalidated our view. In other words, instead of pulling back further, NZD is likely to trade in a range, probably between 0.5740 and 0.5825."

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.

GBP/USD clings to gains near 1.3400

GBP/USD retreats after reaching a three-week high above 1.3430, challenging the 1.3400 yardstick on Thursday. Although easing political uncertainty in the UK helps the quid limit its downside, escalating tensions in the Middle East support the Greenback, keeping Cable under scrutiny.

EUR/USD faces resistance around 1.1450

EUR/USD keeps the bid bias although it seems to have met a tough hurdle around 1.1450 on Thursday. The pair’s advance follows the bearish tone in the US Dollar despite escalating tensions in the Middle East and a broad-based cautious stance from market participants.

Gold flirts with two-day highs, approaches $4,130

Gold stages a modest rebound on Thursday, setting aside a three-day losing streak and managing to surpass the $4,100 mark per troy ounce. However, steady geopolitical tensions have revived concerns over persistently high global inflation, reinforcing expectations of higher rates across the board and somewhat curtailing the yellow metal’s upside potential.

Bitcoin stalls as mixed ETF flows, renewed US-Iran tensions cap upside

Bitcoin trades at $63,000 on Thursday, recovering slightly after facing rejection near $64,000. Renewed geopolitical uncertainty has dampened risk appetite, limiting BTC upside potential.

Japan may be changing its Yen strategy, but markets don’t look scared

Japan may be changing its intervention playbook, but that might not be enough to rescue the battered Yen. With USD/JPY hovering at four-decade highs, the currency’s weakness is being driven less by speculative pressure and more by a powerful structural force: the wide US-Japan rate gap.

Bye, forward guidance: How to trade when central banks choose silence

Central banks have spent years telling markets what might come next. Now, traders face the possibility that they say a lot less. From the Federal Reserve to the European Central Bank and the Bank of England, policymakers are pushing back against forward guidance.