NZD/USD: May not be able to break clearly above 0.6000 – UOB Group

FXStreet Insights Team FXStreet

New Zealand Dollar (NZD) could rise further, but it may not be able to break clearly above 0.6000. In the longer run, momentum continues to suggest a higher NZD; it must first close above 0.6000 before further advances are likely, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.

Momentum continues to suggest a higher NZD

24-HOUR VIEW: "We noted 'a firmer underlying tone' yesterday, and we expected NZD to 'trade in a higher range of 0.5930/0.5970.' However, NZD rose sharply and reached a high of 0.5997. Today, NZD could rise further, but overbought conditions suggest that it may not be able to break clearly above 0.6000. On the downside, if NZD breaks below 0.5950, with minor support at 0.5965, it would mean that is likely to range trade instead of heading higher toward 0.6000."

1-3 WEEKS VIEW: "We have maintained the same view since last Friday (08 Aug, spot at 0.5960), in which we stated that 'upward momentum is building, but not significantly.' We expected NZD to 'edge higher,' but we pointed out that 'it is currently unclear if it can reach 0.6000.' Yesterday, in a sudden move, NZD rose sharply to a high of 0.5997. While increasing upward momentum continues to suggest a higher NZD, it must first close above 0.6000 before further advances are likely. The likelihood of NZD closing above 0.6000 will remain in place, provided that the ‘strong support’ at 0.5930 (level previously at 0.5910 yesterday) is not breached. Looking ahead, the next level to watch above 0.6000 is 0.6020."

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.

EUR/USD embarks on a consolidative move around 1.1600

EUR/USD rapidly leaves behind Friday’s small downtick and trades with solid gains on Monday, consolidating its daily advance around the 1.1600 region as the NA session draws to a close. Meanwhile, the improved risk appetite following the US-Iran deal and the reopening of the Strait of Hormuz continues to weigh on the US Dollar, lending support to the broader risk-linked galaxy.

GBP/USD retreats from tops, back to 1.3420

GBP/USD keeps its advance past the 1.3400 yardstick at the beginning of the week. In the meantime, Cable continues to draw support from improved market sentiment following reports that the US and Iran have reached a framework agreement aimed at ending the conflict and reopening the Strait of Hormuz.

Gold stays firm, still below $4,400

Gold builds on its recent gains on Monday, climbing well north of the $4,300 mark per troy ounce. The yellow metal benefits from renewed selling pressure on the Greenback as investors reassess the implications of the US-Iran agreement to end hostilities and reopen the Strait of Hormuz. Market participants now turn their attention to Wednesday's FOMC gathering.

Ethereum Price Forecast: BitMine continues accumulation as ETH climbs above $1,800

Ethereum (ETH) treasury firm BitMine Immersion Technologies (BMNR) expanded its holdings last week, purchasing 76,881 ETH amid weakness in the crypto market. The acquisition lifted BitMine's stash of the top altcoin to 5.62 million ETH worth $10.35 billion at the time of writing. The company claims it now holds 4.66% of ETH's circulating supply, bringing it closer to its alchemy of 5% goal.

Indonesia may have stabilised the Rupiah, but the bigger fight is not over

Bank Indonesia’s emergency rate hike has bought the Rupiah some time, but the currency’s hesitant response suggests it has not yet restored confidence. Can higher interest rates solve the Rupiah’s problem, or do the country’s challenges run deeper?

4.2% headline, 0.2% core: Why the Fed's next hike may be targeting the wrong problem

May's CPI put headline inflation at 4.2% on the year, up from 3.8% in April and the hottest reading since April 2023, while core prices rose just 0.2% on the month, undershooting the 0.3% consensus and halving April's pace.