NZD/USD nears resistance at 0.5800 amid firmer tone – BBH

FXStreet Insights Team FXStreet

NZD/USD edges higher toward 0.5800 as New Zealand’s ANZ business outlook survey shows improving sentiment, with business confidence and expected own activity reaching multi-month highs. Despite the encouraging signals, the RBNZ remains on track to ease policy next month, with markets pricing a 90% chance of a 25bps rate cut to 2.25%, BBH FX analysts report.

RBNZ still expected to cut 25bps on Nov 26

"NZD/USD is a little firmer just under key resistance at 0.5800. New Zealand’s October ANZ business outlook survey suggests green shoots are emerging. Business confidence rose to an eight-month high at 58.1 vs. 49.6 in September, expected own activity jumped 2 points to a six-month high at 44.6% and reported past activity (the best GDP indicator) was little changed at +5."

"Nevertheless, the RBNZ remains on course to deliver additional easing because underlying inflation is within the RBNZ’s 1 to 3% target range. The next RBNZ policy decision/Monetary Policy Statement is on November 26 and markets price-in 90% odds of a 25bps cut to 2.25%. Resilient global economic activity offsets the drag to NZD from expectations of looser RBNZ policy."

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 drops back to 1.3200 amid UK political chaos

GBP/USD has come under renewed selling pressure in the European session on Monday, falling back to the 1.3200 region. UK PM Keir Starmer is set to announce his exit plan later today. That continues to undermine the British Pound amid renewed haven demand for the US Dollar.

EUR/USD turns south toward 1.1400 amid concerns over Iran deal progress

EUR/USD turns south toward 1.1400 in the European trading hours on Monday. Concerns about progress for the US-Iran peace deal and expectations of higher US interest rates keep the US Dollar supported against the Euro. ECB President Lagarde is set to speak later on Monday.

Gold sticks to modest gains; bulls seem hesitant amid Fed hike bets, Iran risks

Gold attracts some buyers at the start of a new week, and seems to have snapped a three-day losing streak to a more than one-week low, touched last Friday. Crude Oil prices turn lower following a modest bullish gap after mediators Qatar and Pakistan announced a formal 60-day roadmap aimed at securing a final US-Iran peace deal. This helps ease concerns around inflation and higher interest rates, offering some support to the precious metal.

Breaking: Iran closes the Strait of Hormuz amid ceasefire deal violation

Iran says it is closing the Strait of Hormuz after accusing the United States (US) and Israel of violating the ceasefire. According to Iran, the decision came over the continued Israeli strikes in Lebanon. The Iranian Revolutionary Guard Corps Navy issued a warning to all vessels: "Do not approach the Strait of Hormuz; otherwise, your security will be jeopardized."

Cardano: Whale accumulation offers limited relief

Cardano (ADA) is trading near $0.158 on Monday after a steep 14% correction in the previous week. While on-chain data from Santiment indicates that some large holders accumulated ADA during the recent sell-off, derivatives market indicators remain mixed.

Regime change: Inside Kevin Warsh's first move to make the Fed unreadable on purpose

The rate did not move. That was the least interesting thing about Kevin Warsh's first meeting in charge of the Fed. The FOMC held its benchmark at 3.50%-3.75% for the fourth straight meeting, exactly as priced, and then the new chair used his first press conference to dismantle the machinery the market has leaned on for a decade.