NZD/USD: Next major target level is 0.6450 – ANZ

FXStreet Insights Team FXStreet

Kiwi has seen move that has taken it through resistance at 0.6325. Next target on the upside aligns at 0.6450, economists at ANZ Bank report.

Large interest rate advantage for the Kiwi

“Kiwi has rallied strongly. This has come about mostly via a weaker USD (with the DXY at a fresh low for the cycle), but the NZD has also differentiated itself against the AUD, which we believe likely reflects its large interest rate advantage. That’s certainly a pillar of support (especially given the collapse in US bond yields).”

“Price action looks extremely solid, and technically, the next major target level is 0.6450 (marking both the Aug high and the 61.8% retracement of the whole 2022 move).”

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 stays offered, sinks below 1.1700

EUR/USD leaves behind two daily advances in a row, facing renewed selling pressure and returning to the sub-1.1700 region in response to the late rebound in the US Dollar ahead of the opening bell in Asia. On Thursday, market participants are expected to closely follow the US weekly report on the labour market, GDP prints and the PCE data.

GBP/USD looks vacillating around 1.3430

GBP/USD is alternating gains with losses midweek, pushing back towards the 1.3430 area after bottoming out near the 1.3400 support. The modest recovery in Cable comes as the US Dollar advances modestly following President Trump’s comments at the World Economic Forum.

Gold corrects sharply lower, bulls retain control

Gold pushed its rally further on Wednesday, hitting a fresh all-time high near $4,900 per troy ounce earlier in the session. Risk appetite remains fragile, with investors staying cautious after President Trump delivered his speech in Davos, while EU–US tensions over the Greenland issue continue to simmer.